Mine was out of warranty, so Google declined to replace it or fix it. It seems to me that either they are very sloppy when they send updates to the device or it is all a planned obsolescence to make you get a new device (although why would I pick an Android based tablet again?)
On my first call to Google, they told me to wait 2 days for the device to finish installing the update. Since that did not work, they told me how to reset the device. It didn't work either.
You should not be paying for a new device or repair if nothing you did made the device unusable. You were not at fault of anything. They should replace your device.
For the technically inclined, fixing it by flashing a new ROM may be just a new challenge. But for the regular folk it is just money in the garbage.
Alone I may not have a case, but if you want to pursue legal action against abusive business practices, let me know. Together we may avoid this from happening into the future. We may even avoid generating electronic garbage. For now...I may start collecting Nexus 7 devices stuck on boot and make an art exhibit.