Of course you're not bonkers... What's the rush?! You're tired, I know - it clouds everything when you're not sleeping well but this is probably just a stage he'll be out the other side of before you know it. He's still only 7 months old, he needs the comfort of knowing his mummy is right there.. If your instincts are to be there for him then do it!
You say you haven't tried any sleep training methods 'yet' - I'm a firm believer that all children will learn to self settle and sleep through (whatever that means) eventually. I have never done cc with DS and he's now able to go to sleep pretty much on his own at night (naps are a different matter!) - the only 'training' he's had is me waiting until he seems ready for each new step before trying it, if it hasn't worked I've waited a while longer. I have a very 'difficult' child when it comes to sleep and saying no to milk.. If I did cio or cc I am absolutely sure he would never actually go to sleep, he'd just cry until he made himself sick or something - if my kid can do it anybody's can, it's just a matter of being patient.
Do you sleep when he sleeps during the day? Can you go to bed when he does for a few nights? These things might help you catch up on sleep so you have more 'energy' to deal with the night 'feeds'
I found I could just drift off once DS was latched on during the night and so would he but I know what you mean about the shallow latch, it's not possible to sleep through that.. I also found once I became pregnant again I couldn't sleep through his feeds which is one of the reasons I decided to night-wean him, but as I say he was 15 months and obviously ready - I don't believe many 7 month old's would be but you may be able to use some of the techniques to unlatch him sooner so you can both get some rest.
It might be worth posting in the breast/bottle feeding forum as well, there's some very knowledgeable ladies over there.
Whatever you decide to do, I hope you get some sleep soon!