I do have one honest question.  If Genesis 3/V7 cannot be used in Poser why does V7 come included with the DSON core installer.  What is it used for?

The DSON Core files are the files for Studio.  Most Poser CF's are simply scripts that tell the DSON importer to load the Core files...

Correct. DSON is a content notation format. The DSON Importer for Poser is a Poser Plugin to import the format using Poser's Python interface. 

Since the DSON Importer for Poser is a plug-in it relies on, and is limited by, the Python based API and the technical capabilities of Poser.