That noise reduction is actually really impressive. The Canon 7D has pretty bad low light performance. Those lines you are seeing is fix patterned noise and is totally normal.
personally I try to never shoot above 200iso. At 400iso I start getting hot pixels and the image noise gets really bad from then on.
your camerasensor is fine 
Thanks, I'm feel better now with 3rd party validation, reference. Thank you! It's just pretty heavy denoising with neat video. Well worth the money, to be honest. I paid for like the multiple keys for Premiere/ After Effects.
Also, this is for @dfort - I am on firmware 2.0.6 now and I am running pretty stable, I have all the essential features I would like out of Magic Lantern to keep my camera worthy and usable for everything I do.
Couple issues I have - when recording, some of the focus marks and overlays(?) tend to freeze on the screen & stay there which is very ugly and distracting while I film, but it doesn't burn into the actual video, which is good.
Second, I was preparing to do full 14-bit raw, up to 12 minute long takes at 1600x900. The camera got that far. No problem. It was a huge file, which was expected. Whilst building the index files, it was too much for the camera I noticed. But even building OTHER index files for smaller shots, my camera glitched out and gave me an ugly purple/pink distortion.

This lasted until I reboot the camera, of course. But for future instances, I don't want to have to rely on rebooting the camera in case I do.. say 5-6-7 minute or more longer takes and I hit the playback button. This would mean I would NEED to have MLV play module OFF which is an extra hassle/step. I don't mind it, but I don't prefer it, either.
I also ran some tests when I upgraded to 2.0.6 and some passed, some didn't?, the camera just went into a nonstop test mode- it was for benchmarking, I believe. It was some time ago.
You tell me what I need to do for you so you can work your magic.
Thanks!