Some body else has just posted saying they have a paid camera app $1.99 so it mite be worth a punt.
http://forum.xda-developers.com/show...868962&page=16
Hi,
thanks hillbeast for discovering the 720p recording capabilities of Nexus 7.
I have just modified my camera app (Camera JB+) to support 720p video recording. No root/profile change requiered.
Unfortunately only paid version (1.99$) is available, but I hope to release a free/limited version soon. Anyway, If you want to try it and after testing you are not happy with it I will refund the money (no 15 minutes limit).
Here is the XDA thread with the info:
http://forum.xda-developers.com/show....php?t=1871900