Chris Bryant wrote:
... the Android models seem to be stuck on whatever version they come with as well. ...
This isn't the case for the N7. One of the advantages of purchasing Google tablets & phones is that they will get the latest OS upgrade and will also be among the first Android devices to get upgraded. Google announced the new KitKat OS yesterday and stated that the N7 will receive it. The main reason why other Android devices are slower to get upgraded or don't get upgraded at all is because the various mfrs put their own little "tweaks" onto the OS whereas Google devices run the vanilla Android OS.
Personally, I wouldn't consider giving up an N7 for an iPod Touch since it would be such a downgrade, even ignoring the screen size (quad core processor vs single core, 1024M ram vs 256M ram, no gps in Touch, less battery time on Touch, etc...) but I also feel the kids would prefer the iPod Touch.
How old are the kids?