Not only did Google make asus remove the sd card slot, but they also removed USB drive support from the USB OTG interface (requiring rooting to add it back).
With a full battery charge, I tried hooking a little webcam (500mA rating) to my USB OTG and the N7 locked up with a black screen. Only a half-minute power-hold (reset) would get it back.
Rumors are that Google removed SD card support so they could sell the 8GB to 16GB upgrade for $50USD when it costs them $7.50USD. But even the free space on 16GB is barely enough to hold one or two HD movies.