It's normal for a 7.5 month old to still wake to nurse -- if it's happening a LOT, it may not be for hunger, but my child only ever nursed for 5 mins at a time, and took a whole feeding in that time, so the length of time doesn't necessarily reflect the amount of food, depending on how efficiently they nurse.
As for not swaddling, I'd recommend starting by swaddling with one arm out for naps and let her get adjusted to that. Then swaddle with both arms for naps and let her get adjusted to that. Then stop swaddling for naps. We did it as a gradual transition and always introduced new sleep stuff during naps before introducing it at night, and found it worked well.
Let her sleep however she's comfortable. My child did the same thing on the belly for a long time, but sometime after 1 year started belly sleeping.
If you're thinking of checking out Babywise, I'd recommend reading some about the controversy behind it and why the AAP recommends against it. http://www.ezzo.info/