There are some scenes which can be challenging depending on her temperament: The smackdown of the pigs in the opening scenes, the bloody dragon as it’s chased by a flock of paper, the overwhelming presence of the witch, and of course no face when it starts gobbling people up.

I’ve seen a couple kids get visibly shaken while watching Spirited Away, and others who are just peacefully enthralled. It all depends on the kid.

Yes, but IMO there's depth to it that she might be able to understand and appreciate more once she's around 10 years old. Another really good Studio Ghibli film with a lot of charm but a bit less depth is My Neighbor Totoro, which might be an even better fit for a seven-year-old.

As mentioned Spirited Away could be hit or miss at that age, but you can't go wrong with My Neighbor Totoro. It's got some emotionally intense sequences, but they pay off well in the end.

It depends greatly on your and their approach; Id check with parents. I generally show my kids everything and try to coach them away from being afraid, but that might seriously bother other parents.

I think so