I sub'd this thread a while ago because I, too, have a Nexus 7 tablet. I'm sorry to see that it's not working as you had hoped. I will look into the quality of the tablet as a music playback device myself tonight. I can compare it to my iPhone both inside the house and the car. I'm going to try Poweramp, as it seems to be the consensus for best music playback app on the N7.
It'll be disappointing if Samsung really put as little thought into music playback quality as the camera on the device. I use N7 for work in the field all the time, but I hate that I have to use my iPhone for photos because the only camera is on the face of the device
