Lenovo maybe trying to sell off all their Intel Atom chips, 64GB SSD and 2GB of RAM chips by installing them on affordable tablets. These slow tablets are not good for Windows 10 which needs at least a Intel Celeron, 500GB SSD/hard drive, and 4GB of RAM to run smoothly, and not run out of space if you plan on installing many software and game titles while storing your personal files like videos, and music files.
The tablet maybe sold at a loss, or the profits are very low for this tablet. Lenovo may sell extended warranties, and paid technical support and repairs for this tablet to earn money from this tablet.
Stores like Bestbuy, and Staples earn a lot of money from extended warranty protection plans, so it maybe the store which is selling it for a loss, and later pressure people into buying extended warranties when they pay for the tablet. Some stores also offer services like computer setup, and installing 3rd party software where they earn some money.
The Intel Atom x5-z8350 CPU on this tablet works for Windows 7, but there are no onboard Intel HD 400 video drivers for Windows 7 according to Will the Atom x5-z8350 run Windows 7 pro 64 bit |Intel Communities , so the tablet need to use the default Windows video driver which came with Windows 7. The video performance will be slower in Windows 7 than 10 because the 7 drivers may not support the more advance featurws like hardware video acceleration built-into the Intel onboard video chip.
Other Tablet Parts like the webcam, sound, and wi-fi adapter may not work with Windows 7 because there are no software hardware drivers for 7, so you may need to buy a Windows 7 compatible USB wi-fi, sound, and webcam accessery to use this tablet for video chat, and watching online video.