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The new 32GB Nexus 7 looks perfect for what I want - a quality device with enough storage for my 7 year old. I don't need the cell service for him (if it were for me, and were Verizon compatible, I would want it, since I can add the tablet to my shared data plan for $10/month), and, although I am a huge advocate for the inclusion of SD storage, I (he) can survive with the 32GB, along with my Seagate GoFlex Satellite drive and Airstash.
I also don't want to limit it to the Nook or Kindle app store, and don't want to bother with altering the stock OS (which I have done on my own Nook Color), as he will be traveling back and forth between my house and his mother's and I will not always be available to troubleshoot.
Is it perfect? No. But it's a lot better than most of the other options, and at a pretty darn good price.
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