That is why I am longing for good EF-S prime. As for the pricing, If the 7D user will spend $1600 on the body only, I am sure that they would not mind to pay for a EF-S good prime (optically and true USM) with the price close to the L lenses with smaller size and weight.
I know, I am the minority.
Unfortunately, you are. As a group, 7D users are in the minority - in the APS-C segment, Canon sells a lot
more Rebel/xxxD cameras than xxD or 7D, or even the latter two combined. Canon's best selling lens is the EF 50mm f/1.8 II, which is similar in design to the 35mm f/2 (although even lower in build), and it's no coincidence that the nifty-fifty is also their cheapest lens outside of a kit purchase. My guess is that Canon's marketing department will try to capitalize on that, and an EF-S 35mm f/1.8 in the sub-$200 range would garner more profits from that segment.
You have a 7D...for better or worse (and it's definitely worse from the standpoint of a prosumer's wallet!), Canon wants you to buy the EF 35mm f/1.4L. Then they want you to buy a 5DII to use the full image circle of that fancy L lens. Then
they want you to buy the 50mm f/1.2L so you can get the same framing you liked with the 35L on APS-C. Etc.