Yes I admit Apple is very scared. Even though the Google Nexus is a 7" tablet, with its low $200 price tag it really puts pressure on Apple. The other $200 tablets (Kindle Fire, etc.) on the market never offered as much power as the new google nexus tab. This tab is a true contender that can really threaten Apple's revenue. Apple hates to lower their hefty $500 price tag on the iphone jumbo.
Let's admit apple has stole there fair share of stuff from google. Notifications, Music on the cloud, others have yet to think of.
I used to own Apple products when it wasn't cool. That was when apple really came out with innovative ideas and put customers as the most important thing. Now Apple is just a corporate giant that is looking to rip off customers.