I have no issue with the sm7, I agree, and yes, sometimes dynamics are the right mic, I really just missed putting the word "generally" in front of my statement. On average, a condensor will give you a better vocal track than a dynamic.
I was primarily commenting on the sm58 or sm57 as being "best buys" for vocals. I used a 58 for a year, and have redone all my vox (and other singers) using a SP B3 and it sounds much better. The 58 has a real nasal midrange boost, and doesn't "breathe". There may be a place for the 58 in a recording, but if I had only one mic for doing vox, and had little dough, I would go for a condensor again.
If I did a lot of jamming and needed a mic for live use and some recording, I would get a sm58 and then rent a condensor for a weekend and redo all the vox I had recorded with the 58.