Looks like the troubles for the 16 GB Nexus 7 continues for Google, who have decided to stop offering it from their own Play store after the shambolic pre-order situation. The 8 GB is still available, and shipping is in 3-5 days. The tablet clearly has a huge demand, with the majority preferring the 16 GB version primarily because of the lack of expandable storage.
Some have stated that the 16 GB variant is still available at some brick-and-mortar stores, like Best Buy, so if you should probably look to head over to check it up. Additionally, an interesting theory I read these stores still have stock is that Google’s sending them pretty large shipments on their demands. The stores apparently have a very tight margin on the 8 GB version, and would much rather simply offer the 16 GB.
Honestly, though, I don’t think this is the end of the 16 GB from Google Play. How much ever they would want to maintain relationships with the stores, the entire purpose of the Nexus 7 was to promote Google Play. My guess is that the stores just overstocked expecting the rush, and/or Google sent them larger shipments to make sure the device is available while they solve chinks in their own deliveries.