He wants to stay on the current team so I would just let him do that at 7 years old.
However, there's gotta be u8 teams that are competitive for him.
If you're in LA, then TFA or LAFC SoCal.
If you're in OC, then Laguna United or Strikers.
If you're in SD, then SD Surf or City SC.
There are others sprinkled in there at the youngers like Legends, Rebels etc.
I think playing the whole game at 7 yo is invaluable. I think you can develop a keen game sense by being in the game through the up's and down's of a game that you can't learn by playing a few mins here and there. But I get that having fun and playing with friends is super important as well.
The best case scenario is to play every min on a top team with friends he loves.

But I know they don't always overlap like that.