Just finished playing the update and it's really hard for me to get excited about it since I played the original and there aren't really any huge differences besides the girls looking older. I guess I will only care about this game once they finally go on the damn trip.
I suspected as much myself, that's why I've avoided the revamped version so far. If it still follows the story chapter by chapter as the "old" version, I'll hold off until the new version reaches chapter 7 (the previous one got up to chapter 6 when the dev decided to redo the models).
It's not removed for R7 and there are no UA characters. He's remaking it because he chooses to, if the creator has said otherwise then I'll take it back. I dont think he's remaking it to change character models.
The old version would most certainly be removed for R7. Although the old edition had no mention of their exact ages (or age range), as far as I remember (and I even tried digging through the source code just now to find a reference), just their looks alone would have caused enough doubt for rule 7 removal.
All games with the "loli" tag are balancing on a fine line with rule 7 on F95, though. I don't necessarily agree, but site rules are site rules, and we'll have to respect that. There are sites out there that aren't as strict for this specific tag, but you're on your own for seeking out those.