Well, take a look at the differences. A quad-core Tegra 3 vs. dual core 1.6ghz A9, 16gb of space vs. 8gb. 1280x800 vs. 1024x600 resolution, the RAM is the same, you pick up an SD slot in the HP which is a small tick in its favor and a rear facing camera. It's running 4.1 which isn't bad but I doubt it will stay on the cutting edge of android releases like the Nexus 7. So when you tally it up, you get a far superior tablet in the Nexus 7 for $30 more.
All that said, HP isn't sounding all the horns on this, they're playing it cool and just marketing it for what it is, a cheap android tablet. There's no harm in some competition but I would guess, and this is just me speaking for me, that anyone who buys this tablet is either looking for something that is very much on the cheap, or just was a little uneducated. Again, it's not like it's a terrible tablet or anything, but for the price they're pitching ($169) it's in awfully close proximity to something vastly superior.