Here's a way to think about the relationship between ISO, noise and image viewing size. It might be complete nonsense, but I think it would reel in expectations to a more reasonable level, and I'm sure there is some logic that works here....
Let's suppose that as far as noise is concerned (ignore sharpness for now) a well exposed file from a 7D shot at 100 ISO can indeed be viewed at 100%, with noise at acceptable levels. On a 100 DPI monitor that would produce a virtual image of 52" across, or over 4'. That's equivalent to watching a TV with a screen diagonal of 62", which is pretty huge and not something you would usually watch from 12" away, as you might when examining an image on a monitor.
Now, if you were to raise the ISO to 200 and also double the shutter speed to maintain the same exposure the sensor would only receive half the light. The ISO has nothing to do with it, but by doubling the shutter speed the sensor is only exposed for half as long. Thus only half as many photons are received. With only half the light captured by the sensor, perhaps there is an argument that you can only produce an image of half the area in total, if you want to preserve the perceive noise levels.
So instead of continuing to display a 200 ISO file from a 7D at 100% for a 52" image, we would need to reduce the dimensions by SQRT(2), or a factor of 1.41. Thus your viewing % should be 100/1.41 = 71%. That would maintain equivalent light density within the image, and approximately equal noise levels. Even at 71% viewing you'd still have an image that was 37" across - over 3'. That's pretty huge for analysis from 12" away.
If we continue this approach as we raise the ISO in 1 stop intervals we get the following progression in order to preserve the density of light....
- At 100 ISO, view at 100% for a 52" image
- At 200 ISO, view at 71% for a 37" image (or you could go for a common figure of 66.67%)
- At 400 ISO, view at 50% for a 26" image
- At 800 ISO, view at 35% for an 18" image (or you could go for a common figure of 33.33%)
- At 1600 ISO, view at 25% for a 13" image
- At 3200 ISO, view at 18% for a 9" image (or you could go for a common figure of 16.67%)
- At 6400 ISO, view at 12.5% for a 6.5" image
Now, based on real world experience I'd actually say that table of figures is not at all far from the truth. If you were to use NR, or print, you might well squeeze a little more size out of the high ISO images. Depending on the nature of the subject, you might actually be able to go quite a bit larger. e.g. running heavy NR on a bird's feathers, small in the frame, would destroy important details. Running heavy NR on a vehicle that was large in the frame probably wouldn't.
Of course, if you were to view the image at a distance appropriate for the image size, to view the image at 100%, or 52" across, you should be standing about 5' away from the image, not 12".
It really isn't that the camera is performing poorly. It's (IMHO) far more the case that people's expectations are in need of adjustment. Some people seem to expect that they can shoot at high ISOs and still crop in at 100%, or perhaps 50%. That's really not going to work very well, especially for subjects with fine detail that is lost in the noise, like little birds filling about 5% of the frame. If you shoot with a 7D at 1600 ISO then, according to my table above, you should consider viewing the file at no more than 25%. In other words, if you want to make a web image of 800x533, expect to crop out an area of 3200x2133 and then resize that to 800x533. Do not crop out a tiddly little area, of say 1500x1000 and then expect that to look acceptable as an 800x533 web shot. It probably won't.
Returning to my basketball shot above, note that I cropped that image before converting to JPEG for final output. The cropped dimensions are 2372x3558. By consulting my table above I see that for a 6400 ISO image I should be viewing at only 12.5% which means I should only expect to produce a file of 297x445 pixels from that crop. Is it any wonder that by displaying at 533x800 it still has signs of noise? That's a display size of 22% instead of the "proposed/recommended" 12.5%.