I currently have an iphone4, and am looking into the nexus 7. I tend to drop my phone a lot though and am curious how easily the screen cracks or scratches. Is it any better or worse than the iphone?
Pretty sure the N7 has Gorilla Glass or the equivalent. It wont scratch easily, but because of their weight, tablets dont take kindly to falls - that being said, the sheer size of them and the fact that you dont whip them out of your pocket all the time makes them less prone to falls in general.
Both my OG Droid and D2 had GG -- never got a scratch and they lived in my pocket for 2+ years. My Transformer Infinity also has Gorilla Glass. I wouldnt say that it's any "stronger" than any other glass, but it's definitely scratch resistant.