I'm eventually going to be boosting my jeep (turbo though). 10hp per psi isn't true. You may get more or less, CFM numbers, efficiency range, temps come into play along with how well your motor can move the additional air, and your timing/fuel blah blah blah blah blah haha.
I'd run an intercooler if i were you, i dont see any reason not to, you can find used ones from other cars for free-75 bucks. If you want you can run alchy/water injection also. Post pictures of your progress please, because that c230 eaton m62 is exactly what i was going to use to boost my jeep until my buddy gave me a few free turbo parts, i was going to try and wire the clutch to a switch though that i was going to let be triggered by my megasquirt. If the baby turbo doesn't provide what i'm looking for i may end up throwing either that eaton or an opcon/autorotor twin screw on my jeep, or maybe i'll step up to new garret GT series turbo.
If you can eliminate detonation and have reasonable temperatures (including EGT), then i dont see why you can't run 7psi. Tuning is the key, look at other cars (since boosted jeeps, especially ones that are tuned right are rare), one guy may blow his motor on only 9psi where as someone else may be running 15psi from the same turbo all day long.