For all the rules around USB, it has pretty much become a free-for-all standard. The beginning of the end was phones that used USB to charge. Many will consume 500 mA without even negotiating, and most every hub or laptop is happy to oblige. There are a ton of accessories too that use around 500 mA and don't even have a micro. And then there are the devices that have 2-3 USB plugs so that they can pull 1-1.5A.
In short, negotiating anymore seems to be very passe.
The biggest problem with USB is inrush. Stick a few hundred uF of capacitance across the power supply, plug it in, and you'll drop every single device on the hub below 4.5V for a few mS and they'll all reset.
If you are using a boost to get 7V, then if the boost fails you'll be at 5V, which may or may not result in excess curretn being pulled. I'd guess that most of the time it'll result in less current being pulled. As you draw more current, the USB bus voltage will sag and devices will start to drop off. Most powered hubs that I have seen use a 5V 1.5 or 2A supply and just pass that voltage right on through to ever port. So a single device can pull an amp no problem.
As noted, polyfuse can help here.