The Amazon Kindle Fire took the market by storm when it was announced to cost only $200, and still be good enough for your regular browsing, playing games, using apps and watching videos, and last but not least reading books, which is kind of what Amazon would like you to do anyway.
The Android community was quick to support the Kindle Fire because it was a way to show Apple that the iPad is not the "iPod of tablets", and a lot of them recommended it everywhere, the tech media picked up on the excitement, and started getting excited themselves about this $200 tablet that can do almost as much as an iPad, but for less than half the price.
But now that the Galaxy Tab 2 (7.) is here, I believe that will stop. People will stop recommending the Fire for the most part (depending on whether they think the $50 difference matters to whoever they are talking to), and instead will promote this table that offers almost everything Amazon has to offer, and much, much more with the Android 4.0.
The extra price also seems to be worth it, because it has slightly better hardware. It's lighter, thinner, and it has better specs. It has 16 GB of storage instead of only 8 GB for the Fire, 1 GB of RAM instead of 512 MB, microSD card, and it even has 2 cameras. I'd say the extra price is just about right.
For people who are interested in Android or rooting it, getting this tablet instead of the Kindle Fire is a nobrainer as well. But this should last only until the rumored Nexus tablet that's supposed to come out in July (still a few months to go). I expect that tablet to have around the same specs, but a better screen with an 1280x800 resolution (instead of 1024x600 like Fire and the Galaxy Tab 2), which should make take crisper, and allow you to view movies at their native HD resolution. It will most likely have a faster processor, Google's latest stock Android version, and it should sell for $200 or less.