I have an iPad 3 and a Nexus 7, and I just compared some images side-by-side on both. Honestly, I can't tell the difference. Color saturation and detail seems almost as good, with the iPad 3 getting the nod simply because it's higher resolution. Perhaps a professional photographer or designer could spot a difference that I don't see, but then again, I'm not a professional, so there you have it.
I'll say that the iPad 3 screen remains the best I've ever seen on a consumer-level device, tablet or otherwise. It really is excellent in all ways, and in particular text remains sharper than on the Nexus 7. However, I think the difference really isn't meaningful--text is plenty good enough on the Nexus 7, and as I mentioned I just can't see a difference on images. Let me add that I also compared the Samsung Galaxy Tab 2 7" screen to the iPad's, and there's no comparison whatsoever. I've found the Nexus 7 screen to be MUCH better than the GT 2 7". Same with the Transformer Prime, and the Excite 10.
The screen washing out after video plays remains a problem, but it's easily fixed by just turning the screen off and then back on. Ultimately, I just can't see myself being terribly concerned about this "problem," because at least to my eyes I can't see it.
That damned dead pixel in the upper right-hand quadrant, now... That's a different story.
