I think there is a market for a cheap ~$200 tablet, at the end of the day I don't think portability really comes into play. A $200 purchase is a lot easier to make for most people than a $500 purchase. I might even pickup a Nexus tablet to play around with. A 7" tablet is not anymore portable than a 10" tablet, it still won't fit into any pockets that I have.
Your Galaxy Nexus without LTE is no more 4G than my iPhone. Technically by the true 4G definition, we do not have any 4G products yet, but WiMax and LTE come close enough. Here's from Engaget's review of the Galaxy Nexus LTE (
http://www.engadget.com/2011/12/16/verizon-galaxy-nexus-review/)
"And then there's the battery life. It's well known that LTE can put a real hurting on phone longevity and that appears to be the case here as well, our Nexus struggling to hold on to a charge in day-to-day use with all antennas firing. We've as of yet had very limited time with the thing, but in our 24 hours of intensive testing we had to reach for the charger multiple times. Using Google Navigation with LTE enabled? The battery drained so fast our in-car charger couldn't keep up, leaving us unsure of which exit to take off the 101."
The Galaxy S 3 is the first LTE phone I've read about with good enough battery life on LTE.
NFC is going to be great, at this point it's pretty much useless.
Of course a bigger screen is better for certain things, I would much rather a phone that fits easily into my pants.
You are correct in that different people have different needs. A Note makes sense for some people as well, but even a lot of Android users find it ridiculous