eBay with Barnes & Noble has the refurbished NOOK 7" 16GB Touchscreen Tablet for $140 with free shipping. Features integrated Netflix and Hulu Plus.
TI OMAP4 1.0GHz, 7" touchscreen (1024x600), Android 2.3 OS
802.11b/g/n Wi-Fi, up to 32GB MicroSD, free cloud storage
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Pretty good deal on the 16GB version. I would take this over a Nexus at this price since the lack of external storage is what I find most distasteful about Nexus. However, Nexus has ICS, 4 CPU cores + 8 GPU cores.. it's fast and current and that is hard to sacrifice in a new purchase. Maybe I will wait for Nook tablet2 if such a beast is ever born.
If you root your Nexus 7 and install Stick Mount, all you need is an inexpensive OTG cable (about $1 on Amazon) and you're good to go. Not as slick as an internal microSD card, but on the bright side you can use USB sticks, full size SD cards, even USB keyboards and mice. Info on xda-dev, as usual.
We will probably see this price drop soon, as it did when B&N started dumping surplus Nook colors on EBay.
BTW, I just googed stickmount and it seems like a nice little geek experiment but not very practical. Maybe if someone comes out with a custom, very low profile clip-on solution it might make sense.