The answer to your question is very subjective and highly dependent on the logical flow of traffic in the network.
If you create 7 new VLANs (1 VLAN per floor), surely the size of each broadcast domain gets smaller. But if there is a lot of traffic flowing between these 7 VLANs, you are putting more load on the L3 gateway device (CPU specifically) as it has to now deal with extra inter-vlan traffic - something that would not be required if all 700 users were in same broadcast domain (since in L2 communication, nodes can directly talk to each other via source/destination MAC without requiring any L3 involvement). I personally have worked on some cases where the CPU of the gateway device has spiked from 40% to 80% because of this.
If the majority of this wireless traffic is northbound (going out towards gateway/Internet) - then surely segmenting it on a per-floor basis would be a smart move. You can find more information on high-density deployments in this KB: https://documentation.meraki.com/Architectures_and_Best_Practices/Cisco_Meraki_Best_Practice_Design/...
.ılı.ılı. Cisco Meraki
Network Support Engineer
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