As for me I'm waiting, and I'll be waiting a long time. I want a 7" tablet and I want an iOS device with store - no contract, no phone.
Android 3 can't come fast enough. If Steve deems 7" as a nonmarket I'll happily go elsewhere. Not bitter, just not in the right demographic for Apple on this one.
I am probably going an Android 5" MID for portable use. I see 7" as neither small enough for portable use, nor big enough for home use.
Apple isn't know for filling every niche, so I figure 5"-7" will have to be Android.