can't be... if the pump or the float bowl runs out of fuel, the press goes to zero. i think i would shoot a timing lite at it ... if it was retarded like crazy it would do this...
but in your initial post you said the compression was good. if it was lean enough to damage anything you would see that on that test. fix the pump and have a fp gage on it when you run it and it ought to stay at your 7 all the way thru the rev range. as soon as the press drops off that...