jayking,
Taller tanks are not better then longer tanks. Taller tanks have less surface area that allows gas exchanges to occur. Typically, taller tanks have more problems with maintaining a high pH because of this. I personally do not care for taller tanks that do not have an overflow/sump system.
Longer tanks typically have more room for gas exchange, and if you have any long swimming fish, that is an extra added benefit. Plus, you can reach the bottom of your tank without getting your entire arm wet.
Some fish can be put in either tank, such as damsels, clownfish, gobies and small blennies. This is because they are accustomed to staying in only certain parts of the reef. They will stick to one small spot and stay there for their entire lives.
Some fish on the other hand, like tangs, wrasses, dragonettes, and angels need a lot of grazing room and room to swim. This is why it is recommended to get long tanks (6ft+) to accomidate their adult sizes and special swimming room needs.
IMHO, I think you should switch your tank to a longer version. You already seem to be heading in that direction anyway! Seven gallons of water doesn't matter that much when dealing with 30+ gallons. I think you will also be happier moving over to a different tank.