How undiscoverable? I grew up in a fairly music-oriented family and played a lot of instruments as a kid, but didn't formally study music theory. It wasn't until I read parent that I realized "fifth", "third", etc. are 1-indexed ordinals, and not some inscrutable scheme involving fractions. Everything suddenly makes way more sense.
I feel fairly confident that sane terminology would greatly ease this problem.
I don't doubt that it could be improved, but I don't think it's all that bad, considering how many people do learn music theory.
Coming from a family of musicians and artists, it's all pretty foreign to me. And I used to take lessons, and occasionally sit and work my way through a beginner guitar book. I've always heard music theory to be pretty obtuse and challenging. I'm sure if I put in some hours to understand the fundamentals it'd make a lot more sense, and read it at home with a little dedication it'd be a bit easier. It's truly interesting.
[0] - https://www.youtube.com/watch?v=pF8oIKLlBsI#t=132 [1] - http://www.imdb.com/title/tt0115819/?ref_=fn_al_tt_1
Maybe not for you, but it certainly took me a moment to convince myself that that is true.
Anyway, yes, you've shown correctly that mod 7 arithmetic is useful, proving half the great-great-somethingth-parent's point. Now, the remaining interesting cases are the inversion case and the multiplication case, where 0 based is simpler (for me) than 1 based.
Also, the idea of using the word "octave" for "mod 7" is already pretty broken, and is what caused me my initial hesitation.