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People who think that 7/10 games aren't good just haven't played any bad games.
I'm sure there exist people who only played legendary games and once they start playing 9/10 games they will complain how shitty they are. At the same time there are kids who grew up with nothing but Carnival Games, Deca Sports, Game Party and other Wii shovelware and they will go ape shit once they play a game like Days Gone.

So yeah, 7/10 games are good and fun but with a few flaws. 5/10 and 6/10 games are very much playable but will certainly be boring after a while.
Everything below that has major issues.

The reason why 7/10 is considered bad is because the general quality of games is pretty high. A 7/10 game is nothing special. Gameplay not as good as comparable games, may not be as impressive looking as other games, story has been done before etc.. That's why many games receive a score like that. Something under 5/10 is a lot rarer because most companies would cancel a game like that way in advance or invest more time and money to get it above 5/10.