The thing is, when Jeff announced that the KFHD would ship with not 8GB of storage but 16GB, he raised the minimum standards for competing tablets. It may have taken a couple weeks or more for this to percolate through the industry, but as you can see from the actions of Google and Kobo (they upgraded the not yet released Arc) it is having an effect.
While I suppose this is a good thing, I'd much rather have a card slot. Removable storage would allow for several useful tricks for sharing content across my several devices, including giving me the option fo taking high quality photos with a camera and then tweeting them from the tablet. (And that's not as silly as it sounds.)
But I have come to accept that Apple, Amazon, Google, et al are going to release tablets and ereaders without card slots so there's little point in complaining. (Thank you, B&N, for bucking the trend.)
On a related note, one thing that surprised me about the recent Nexus 7 news was the price. According to one screenshot the 32GB model will be priced at $259. That's $10 more than the comparable KFHD or Kobo Arc model, and while you do get more hardware for the price it is still surprising to not see Google match or beat the $249 price for the 32GB KFHD. You would think they would be more price conscious.