I was up at the hangar today, this is the bike folded normally in the pax seat (was able to use the seat to lock the bike in).
Almost, I expect that if I turned the bike a bit it would clear, interference was about .5 inch. As you point out you could put a quick pin on the pax stick and remove it when not in use, then you have plenty of room.
Yes two bikes really can fit in the baggage area of a 7.