Ember Quill
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This error is going to continue occurring until LWJGL, the rendering engine that Minecraft uses, is fixed. The changes from Java 6 to Java 7 broke LWJGL on Macs, and thus broke Minecraft.
At least this will force Mojang to finally start using a newer version of LWJGL. The version that comes with Minecraft is almost three years old.
If you're absolutely determined to play as soon as possible, though, you can try downloading this: https://www.dropbox.com/s/b6gj27dmoyo0h0j/macosx.zip
It's an experimental version posted by their forum admin. (It's from this page: http://lwjgl.org/forum/index.php/topic,4711.165.html in a post by kappa). Not sure how well it works, though. It's still experimental.
If you do choose to go that route, there's a tutorial about updating LWJGL on the Minecraft Wiki.
Kind of a delayed response, but this is not exactly a Java 7 issue. It's an issue with LWJGL, which currently doesn't work with Java 7 on Macs. Minecraft relies on LWJGL, so until that's fixed, you're hosed.
What little we've heard about the Minecraft 1.6 update seems to imply that LWJGL will be fixed by then. So you may have a bit of a wait ahead of you.
A new version of LWJGL just came out that should fix the problem. Update your LWJGL to 2.9.0 and see if that works. There's a tutorial on the Minecraft wiki if you don't know how to do that.