Reactions (kind 7) should not be shown as normal notes, but they are if somebody reposts the reaction or replies to the reaction... in which case I'm not sure what gossip should do.... how should I show a 'reposted reaction' or a thread where the parent is a reaction? These are weird cases.
If you really are getting all kind7 events showing up as UNSUPPORTED EVENT KIND 7, please let me know which version of gossip so I can debug this behavior I have never seen before.