I'm actually waiting for a 7" iPad for my son. Have been since my 2 year old son decided my iPad is his favorite toy. He loves the thing, but it's just a bit too bulky for him to use comfortably.
I was thinking about getting him a 7" Android tablet but he has so many apps and movies that he loves from the Apple store, he probably wouldn't be interested. We even tried a dedicated "kids" tablet in a shop, after 2 minutes he got so frustrated he threw it down and toddled off to look at the other toys.