First off, we have a mention of a device codenamed "Flounder" in a Chrome bug report. Google always names its devices internally, and, since the Nexus 7 was codenamed "Flo," we'd wager to guess this is an upcoming Nexus tablet gear in the testing. Today, we get another proof, in the form of an Android 4.4.3 changelist code line that says “project device/htc/flounder/,” which reconfirms that the new device will be HTC-made.
By outing an 8.9" Nexus 8 tablet, Google will fill another market niche that it doesn't have a presence in at the moment. Granted, this year is said to be the last for the Nexus line, before it morphs into something else, but the plans for a Nexus 8 have probably been in motion for quite a while already. Also, if the device is made by HTC, it will bring more diversification to the portfolio, as the company is renowned for its chassis designs. Thus, the Nexus 8 tablet might not come as cheap, but it could offer stellar specs in premium wrapping, so we can't wait for more leaks to trickle down on the actual looks. Another device is also found in said code, referred to as "Molly," but which Nexus would that be, remains a mystery so far.