Dare notes that he's not the only one underwhelmed by IE7's RSS support. I have to note a caveat here - I haven't tried it yet. However, the comments from Scott Karp are not encouraging:

The main reason I am so irritated by IE 7's lackluster user experience around RSS is that you only get one chance to make a first impression. Using IE 7 will be the first time millions of people will be introduced to RSS and it would be unfortunate if they come away from thinking that is potentially transformative and liberating technology is simply a kind of "bookmarks that nag you all the time" feature.

Looks like I should download the beta and have a look myself.