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I think either tablet could satisfy but I really don't think the Nook will be the tablet for the 7" form factor, you really need an ecosystem such as the one Amazon or Apple offers in order survive in this market. Hardware alone will not do it, there's many nice tablets out there, even more powerful than the Nooks & the Kindles but most do not have that system.
I also have an iPad 2 and is really hard to even come close to iOS mainly for that reason, Apple's ecosystem, if Apple were to produce a 7" tablet in the $300 range no other color tablet will survive unless they come close to doing what Amazon and Apple are doing. Hardware is not really the main feature here, it goes well beyond that and to actual user experience. I think the Kindle Fire because of what Amazon has to offer with their Prime membership and their App, Kindle & Amazon market all thrown in the bunch is a winner so far in the 7" form factor arena, just my 2 cents of course.
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