Yes, on the 70-200 IS would help. I can't believe it when people say otherwise. IS is effective even at higher shutter speeds and even for sports shots, which are sometimes nice when done at lower shutter speeds for deliberate motion blur or panned effects.
But, more to the point, T2i will give you the exact same high ISO performance for a whole lot less money than 7D. So will the 60D. So will the new T3i. IMO, those three give a little more than one stop high ISO improvement over the 10MP cameras. 50D and T1i would be a step up from XS, too, although you won't see as much high ISO improvement. Just use the center AF point, AI Servo and learn to back button focus with whatever camera you buy.
You also might experiment with noise reduction softwares. And, high ISO images sometimes look great converted to black & white.
Isn't there an event photographer shooting the ice skating? If so, there's another possibility... maybe you could buy some nice shots from them.