The tablet situation today is much different than it was even just a year ago, and it's mostly thanks to the advent of 7-inch Android slates. One of the pioneers in the 7-inch category is Barnes & Noble, which tossed its Nook Tablet into the ring with Amazon's Kindle Fire, both of which are now battling Google's recently released Nexus 7. The point is, you have options.
Even more so if you're willing to roll the dice with a refurbished unit. Case in point, Overstock.com is now selling a refurbished 16GB Nook Tablet for just $140. That's $39 off the retail price for a new model (minus $2.95 for shipping), and it still comes with a 1-year warranty from B&N.
If every penny counts, Overstock is also selling the 8GB model for $135 (also refurbished), which is a deal in and of itself, though it's not a great buy when $5 extra nets you double the storage space.
The Nook Tablet runs a custom version of Android 2.3 (Gingerbread), though just like the Kindle Fire, it's possible to root the device and install a clean build.