YANBU at all!
my ds3 who will be 7 in dec has a toy doll and plays with it loads, it goes to bed with him everynight! he loves it. he also loves tinkerbell and princesses and all things pink, purple and sparkly. as well as lego, nerf guns etc, he is who he is and i let him get on with it.
we has even worn a pink silk party dress to school on non-uniform days! my dp was worried about him being bullied, he is in yr2 and tho some comments have been made he is pretty self confident and capable of coming out with a smart arse retort if necessary (having elder brothers to teach him has helped!) and the school and his teachers have been very good to make a point of saying all children are allowed to be different and do their own thing.
he has a very good group of friends, mainly girls, but some boys as well and thankfully not too much peer pressure yet.
his two older brothers dont pick on him or say anything about him liking 'girly' things, we have brought them up better than that! one of them is very 'geeky' and into science, phones, computers, books etc and he is also confident enough to just be himself :) ds2 is total 'boy' obsessed with football, guns, nerf toys etc, and he is also encouraged to just be himself, but as well as being very physical and a 'typical boy' he is also very kind, caring, sensitive and has good empathy and is brilliantly caring with little children etc.
my point really is that all children are different, and i think we do our job best as parents if we simply encourage and support them to be confident in letting them be themselves, without the constraints of peer pressure or conforming to social 'norms' and i think its very sad that any child would be encouraged to change or not do something as its not right because they are the 'wrong' sex to play wiht a certain toy etc
and as for 7 being too old to play with dolls! i have a 10mth old dd and i hope she and her brothers continue playing with their dolls and trains and lego etc much longer than 7yrs, i want them to be children, not forced to grow up to quickly for fear of being babyish!