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Does the STM lens work with the AF on the 7D in video mode? Is it faster than the non-STM lenses? I understand that the mirror may have to flip-up on the 7D to focus during video, or contrast focus; but will the STM work? work better?
It'd be the same as a USM lens; STM is a little slower and is focus-by-wire, but it's also quieter. With DPAF-equipped cameras like the 70D, STM lenses may be smoother for video, though most are showing the USM lenses to be fairly competent.
Don't expect any more or less from the 7D when using STM lenses in place of USM lenses. It can focus without flipping the mirror using contrast AF, but it will be an arduous process that you likely won't want to use while recording without cuts to remove the focus hunting.