I could see how the average consumer would get confused between the two. It is kind of hard for a tablet devices to differentiate themselves in their looks when the entire face of the device is a glass display.
I now own the iPad Mini and up until a week ago I also owned the Nexus 7. The build quality, weight, and battery life of the iPad Mini beats the Nexus 7 hands down. The frame of my Nexus 7 would "creak" along the edge if you put pressure on it.
The Nexus 7 was my first Android device and despite claims that Jelly Bean had finally fixed the platform's major performance issues, I still felt noticeable lag in certain situations when scrolling or paging to different home screens. It wasn't a major issue but I still feel like Android could make some improvements in this regard.
I also felt that the quality and polish of the major apps that I use was better on the iOS platform (with a couple exceptions such as the HTPC remote app on Android that was amazing).
The main thing that I miss from my Nexus 7 is the combination of Voice Actions and the Android Intents system. It felt like a magical moment when I would tell my Nexus 7 to "play some music by Nine Inch Nails" and it would launch Spotify automatically and play the requested music. It kind of blew my mind that I could simply ask this device to play music by almost any artist in the world and it would start playing immediately.