There is without a doubt that Google and ASUS are preparing to launch a 32GB version of the Nexus 7 as one actual device landed in the hands of a customer.
According to PocketDroid, a Japanese customer ordered the 16GB Nexus 7 from the Google Play Store in Japan but received one with a higher storage capacity. Although the label on the packaging mentions a 16GB model, the Settings section reveals 26.62GB of free storage space.
This isn't the first time reports of a 32GB Nexus 7 have surfaced. Leaked screenshots of Carphone Warehouse's inventory and an unknown purchase site show that a 32GB model is indeed coming soon.
Releasing a 32GB Nexus 7 would seem more of a defensive maneuver by Google and ASUS to steal some thunder from Apple, which is rumored to be launching its 7.85-inch iPad Mini on 17th October.