Noticed these tabs recently dropped in price, previously $218 for the 16GB. Having played around with it a bit I can say that the screen is actually quite nice for the lower res and it was quite quick and responsive. Has a Kobo overlay on the OS with a few software features but still has access to Google's services.
Specs:
Available colours
Black and white.
Connectivity
Wi Fi 802.11 b/g/n and Micro USB cable.
Audio
Built-in dual front-facing speakers and universal 3.5 mm stereo headphone jack with SRS TruMedia™ sound.
Device size
189 X 120 X 11.5 mm (7.4 x 4.7 x 0.5 in)
Weight
364 g. (12.8 oz)
Diagonal display size
7” multi-touch IPS display.
Screen qualities
1280 x 800 HD resolution; 215 ppi; displays 16.4 million colours; clarity at extra wide viewing angles (+/-) 89 degrees.
Camera
720p HD front-facing camera (1.3 MP). Autofocus. Face detection with Face Unlock. Skype™ Certified.
Navigation
Home, back, and menu touch sensors. Power and volume buttons.
Processor
1.5 GHz dual core processor. 1 GB RAM.
Graphics and video
Dual-core graphics. Up to 1080p video playback. Support for 3D games.
Operating System
Open access to Android™ 4.0.
Storage
16, 32, and 64 GB models.
Battery life
10 hours of reading and 2 weeks of standby.
Content
Over 3.5 million books
Social reading
Reading Life™, Kobo Pulse™, Facebook Timeline.
Fonts
TypeGenius, font tuning engine designed for the best readability. Choice of 3 font styles, 15 font sizes, adjustable font sizes, and weight.
Advanced features
Android customization features such as resizable widgets and Face Unlock. SRS TruMedia™ sound specifically tuned for tablets.
Software
Tapestries — Kobo’s exclusive interface for easy content discovery.
Supported file formats
Books: ePUB, including fixed layout and enhanced ePUB.
Images: JPG, PNG, GIF, BMP.
Audio: MP#, AAC, AAC+, MP3,.3gp, mp4, m4a, flac, ogg, wav, mid.
Video Formats: 3gp, mp4, webm, H.263, H.264, VP8.
Web browsing
Android 4.0 web browser.
Media
Music Player, Photo Gallery, Video Player. SRS TruMedia™ that provides a wider sound field, deeper bass, and natural stereo sound. 5.1 surround sound support over headphones.
Pre-loaded apps
Facebook, Twitter, and Skype. Stream music from Rdio, access your magazines and newspapers through Zinio and PressReader. Google apps: Google Play, Gmail, YouTube, Google Maps, Street View, Calendar, Contacts, Google+, and Google Chat.
In the box
Kobo Arc, AC power adapter, documentation.
Review
http://www.laptopmag.com/review/tablets/kobo-arc.aspx
http://www.makeuseof.com/tag/kobo-arc-review-giveaway/
Looks like a pretty good tablet.
Do note the battery life on this tablet is tested to be better than Nexus 7's (probably because of it's TI OMAP dual core CPU) and the GPU performance also outshone the N7.
In short, this tablet may actually be superior to the N7 in several ways. It doesn't have Bluetooth though.