for me: lighter, smaller bezel, and easier to hold in one hand.
I bought and returned this when it came out - only because i never felt comfortable holding it.
I bought it to replace my nook simple touch - which i would read laying down in bed with one hand. This just felt awkward to hold with one hand, and if i need to hold something with two hands - it might as well be a little bigger.
Obviously i want all those other things too, but at 7", i want something that is super light and easy to hold.
All that being said, i dont think there will ever be room for a 7" tablet in my "tech bag" (kind of reminds me of how i decided to buy my wedges - 52,56,60,64)
Right now I use a galaxy nexus and a yoga, and then my desktop. I dont really need anything between 4.5" and 13", but my next phone is definitely going to have a much bigger screen, and hopefully only slightly larger dimensions. I think the note 2 is just a little too big, so im really looking forward to the gs4 or the next nexus.