I agree that Swype on a Nexus 7 is disaster, it certainly was on mine. However, at my most frustrated, I started poking around the Swype Beta forums and learned that the Swype I was using (and all of the betas available at the time) targeted ICS and weren't expected to work on Jelly Bean. So I sadly gave up Swype, but ended much happier with my Nexus 7. And now I'm thrilled that there are good alternatives like the 4.2 keyboard and SwiftKey Flow.