Is the D3200 better than the D7000?

Smaller is not necessarily better - that's something else (on a long list of somethings) that is specific to individual users. If the OP, or any other poster, has smallish hands, then a smaller body may be "better". When I was looking at cameras, with the intent to buy, I looked at the D3100, the D5100 & the D7000 (the Canon ergonomics were all "wrong" for me - do you suppose I have "Nikon hands"?). The D7000 felt better in my hands (I have largish hands), so that makes it the "better" camera for me.

Unless you intend to print all of your photographs at poster size or are a professional photographer, a 12 MP sensor (in an APS-C size body) provides more than enough detail. Larger pixel-count sensors, and the extra detail they provide, are the 'icing on the cake"!

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Drew