No, I don't think USC is the 7th best team in the country. They have what is shaping up to be a very nice win against Stanford, and Texas won again which helps them. Ranking 7-14 was very difficult and I think mostly all the teams are fairly even.
The first team in my rankings with a loss (to undefeated #6 6-0 Washington St), USC cracks the top 10 based on the strength of their 5-1 record against opponents that are otherwise 20-9, especially 3-2 Texas and 4-2 Stanford.
USC had their first dominant win in a month but it came against an awful Oregon State team. Utah and Notre Dame will serve as good tests of whether they've righted the ship.