This doesn't really seem to help, he doesn't eat a lot, and not much of what he does eat is bad food. I don't know what to do, I don't want to be at risk for other health problems as well. It seems to me that you are doing all you can to promote healthy habits in you child. You are teaching him how to eat healthier and exercise. This attention to healthy living will be a lifelong health advantage to him.
Weight loss can be a very frustrating goal when that is what is focused on.
I am of the school of thought that it is more important to emphasize healthy habits in children than to focus merely on weight loss as a goal. Patience is key as a average 7 year old will only grow approximately 2 inches a year until puberty when the rate can rise to about 3 inches a year. Often it is easier for children to learn healthier eating if everyone is the family is also given a similar diet. A nutritionist can help with more specific meal planning. Relatives should also be made aware of your goal for the child to eat healthier.