It seems Oracle have released a patch (5758865) , available on MetaLink, with the fix for IE7. This is a one-off patch and requires a password which means you will have to raise a service request and tell Oracle you are having trouble drilling in Viewer when using IE7. This patch is applicable whether you are using relational or OLAP modeling.
The downside of this patch is that it can only be applied on top of 10.1.2.2. You can get the 10.1.2.2 patch (4960210) also on MetaLink. Be warned though that 10.1.2.2 is not a small patch. It is 1.6 GB in size and is a full upgrade of the 10.1.2.0.2 application server.
Has any body applied the 10.1.2.2 patch yet? I'd be interested in hearing how it went and how long it took. I ask because the installation instructions, when downloaded in Word, are a staggering 189 pages.
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