$7k not-including-housing is only normal if you're a returning intern. Otherwise, it's for the top tier. Last summer, Google was $6667/month for undergrad SWE interns not including housing stipend. The stipend should be a one-time $3500 (last summer, many interns could choose corporate housing instead of the $3500 stipend).
You are correct. This is totally standard nowadays. Source: I've been to about a billion recruiting fairs lately and have a bunch of knowledge of competing offers made to my intern candidates and yes, this is correct, and not just for Google interns anymore.
Including housing stipends of about 1k, but none of the other benefits, most of my friends and I are going to be making almost 7k. Making 7k not including housing would be on the very high end (for non-returners).