The only thing Apple needs to do is to release a retina mini. Other than screen density, I can't think of any aspect of the N7 which is particularly compelling.
Some spec bumps are also needed for ipad mini. Nexus have quad core processor with better graphics and 2G RAM (ipad mini have 512mb).
But the major thing is display. Here is where nexus 7 really shine. And also, i like ipad minis bigger display. So if Apple puts retina on new mini, i will get one.
Also, gone is lagy android os. Now they are almost (but not there yet) as smooth as iOS.