I can see the color band in the sky in the video captured by 7D, so I am very sure 7D's video capture capacity is 8 bit color depth in the output end, which means that in the footage/clip, the video color depth is 8bit wide(total 256 grade grey tone)
Provided that the LV is 32bit and the hardware h.264 process is not 8 bit wide, anything capture at the LV can pass through into a video will be way better in color depth
I think for now the safest bet will be either: capture can turn it into small jpg files on the fly and jam them through into the CF card, or, jam the capture video through the camera's hardware encoder(get your fingers crossed that the camera's hardware encoder is not 8bit wide, but I dont think that it is likely so)--anything, 4:2:2, 4:4:4 or 4:2:0. Either way you will get better results than it is now.
7D is not UDMA6 bounded (UDMA7 compatible), so its CF writing bandwidth is limited 133mb/s, that should be around 1000x CF, I believe that there is no way one can jam through anything by raw video mode through to the CF card, even the CF card is 4000x CF and I don't think the 5D2 or 5D3 will be able to exceed that CF card performance enough to write video raw into a CF card. I personally see no reason to look into that direction.
Or, one can use a HDMI recorder...