So $249 for the 16GB Nexus 7, plus $50 for a good case, and $100 for insurance, and you are at $425 or so with tax.
Another $75 and you can have the real deal.

----------
But it is a smaller screen, and there aren't many apps optimized for Android tablets. The A5 processor isn't that different from what was offered in the 3rd Generation iPad and is identical to what is still offered in the iPad 2.
Plus, there's no denying the build quality. If it's anything like my iPhone 5, it will be exquisite.
$329 was the right price. Rumor is that it costs Apple $200 to build. Maybe, just maybe they could have managed $299, but there was no way that this would be a $249 device like the Nexus 7 (16GB version), or a $199 like the Kindle Fire HD. If you haven't noticed, Amazon doesn't make much money on anything. They have lived for 18 years in a reality distortion field that dwarfs anything Steve Jobs could have ever created.