I would like to post an update on my Nexus adventure.
I shut off
Location but was missing some functionally for some apps. I turned
Location back on BUT I set it for
GPS only. The tablet is still working very well and I have some missing functionality back! The only thing I lost is being able to locate and brick the tablet remotely. I don't see this as a big problem as I am very careful with the tablet. I also noticed some time there is a lag when waking the tablet up. I disabled the Auto Rotate and that solved the problem.
I booted into safe mode and turned on all the functionality for
Location and discovered I was having the same problems. That proves that the problem is NOT being caused by any third party apps.
I put Location back to GPS only and the Nexus 7 is now running as good as when it came out of box!