[video=youtube;1hELsUBVR5I]http://www.youtube.com/watch?feature=player_embedded&v=1hELsUBVR5I[/video][video=youtube;ZAq47ogkWKc]http://www.youtube.com/watch?feature=player_embedded&v=ZAq47ogkWKc[/video]
It turns out that the camera in the Nexus 7 is not a piece of junk after all and is capable of much more than stock android allows. This is why rooters root so that we can harness the full power of our devices! It turns out that the camera in the Nexus 7 is fully capable of recording in 720p high def Google just didn't add the media profile for 720p to tell the camera to record in 720p. As you can see above the modification makes a pretty big difference. The Mod is pretty simple and just requires you to moddify the system/etc/media_profiles.xml, or you could do it the easy way and simply flash the update.zip in clockworkmod!
Via XDA