The Model 7 is different from the Model 700 in that the Model 7 was specifically designed and engineered to be a short action receiver, for the building of lightwight but rugged carbines. They have been in continuous production for more than 25 years, and are very well built rifles. It was not designed to be a cheaper version of the Model 700, but instead a better receiver for carbines.
The original Model 7s came only with 18.5 inch barrels, and only (I think) in .243 and .308. They were an instant success, especially with people who hunted from deer stands, and folks who liked to carry their rifles in mixed woods and close fields.
Most of the ones I saw were grouping 1.5 to 2.0 inches right out of the box with factory ammo, which was excellent for such a lightweight carbine, and more than enough for big game hunting out to 250 yards or so.
About the only complaint with the Model 7s were that the 18.5 inch barrels resulted in some significant muzzle blast, especially from the .308, and that a longer barrel might make it less butt-heavy and perhaps more accurate, with less muzzle blast.
So, after a few years, Remington stopped selling them with the 18.5 inch barrel, and started selling them only with 20 inch barrels, which is what they primarily are today. (Perhaps you can now buy one with a .22 inch barrel, but I'm not sure.) They also started selling them in a wide array of calibers. They are great rifles in 7mm-08 and .308.
These are primarily rifles for big game HUNTERS, who know that it is perfectly fine to have a 1.5 inch group rifle for big game. They are not for target shooters, benchrest shooters, varmint hunters, and other assorted folks who like to spend their time trying to get sub 1" groups. Those folks much prefer the Model 700.
I don't understand the person who said that there aren't but a few decent scope bases made for this rifle. When I had one, I always used the one-piece Leupold steel base. My brother had two, and he always used the Weaver base. These are both readily available and excellent. Geez, how many scope bases do you need? I use one per rifle. :-)
When I go to large gunshows, it seems as if there are about 10 used Model 700s sitting out on tables for every 1 used Model 7. And, the Model 7s don't sit there long. They get snatched up early, again, primarily by folks who love to hunt.
Hope this info helps.
Mannyrock