I've changed the title of this thread because the original title violated our forum guidelines. Please no vulgarity or 'bashing' allowed. If you're unhappy with something you can state it in a more measured way...as i've rephrased it.
Now concerning the issue of the 16GB being dropped to $199. This has been covered ad nauseum on this forum. Technology is a very fast moving product type and it's the nature of buying technology products that prices quickly drop and new versions always come out, sometimes in a matter of just months. You see this in phones, tablets, computers...just about any mobile or computing product. Look how Apple just came out with the '4th' generation iPad only 6 months after the 3rd generation and that's a product that is 2x or 3x the price of the Nexus 7. The reality is that no matter when you buy a product in a quickly maturing technology such as tablets...you're ALWAYS going to see a cheaper, better version come out in just a matter of months. It's the nature of the way things are with the competition and fast moving improvements in the industry.
But just keep in mind that if you wait forever to buy a product then you're missing out on the enjoyment of its use for the time you wait. Also, as an early adopter you get to be on the cutting edge and help support the product/brand. Personally, I like to have the cutting edge and I fully expect any technology purchase I make to last maybe a year of usefulness and then upgrade. A year ago I bought a ThinkPad Tablet...which is now discontinued...and now A nexus 7...and I'll probably get a Nexus 10 as well. Next year when a new Nexus 7 comes out with more memory and a higher resolution screen...i'll probably buy that too and sell my old one.
This constant upgrade cycle is something you just have to figure in being an early adopter for a new category of devices such as tablet computers. So rather than be 'angry' at Google...you should be happy that they are pushing to stay competitive with Apple and other tablet makers out there. I enjoy supporting Android in their fight against iOS and Windows and I'd rather see them push the envelope than be stagnant.