Well, 10 nanoseconds is the same as the clock cycle of a 100 MHz processor. 100 MHz isn't too fast these days. I don't know about the 7D, but the three years older 1D Mark III has 40 and 48 MHz RISC-architecture CPUs. Since they are RISC-based, they execute an instruction every clock cycle, normally.
So it's not that 10 nanoseconds of flight time for the light is far different to the timing the camera is working with. On the contrary, it's within the same order of magnitude.
Over to the flash system.
There is no "metering preference" for the A group. If you have one A and one B flash, both aimed at the same subject, but one 2 meters away and the other 5 meters away, the E-TTL II system will meter them separately. If you set a 1:1 ratio, the wireless flash commander will send two different power ratios to the A and B slaves, to make them contribute the same to the illumination of the subject.
The same goes of course for one direct and one bounced.
So it's not that the ratio setting controls the power level of the flashes directly. It does indirectly, but just to achieve a certain level of illumination. This is clearly described in Canons more detailed description of how their flash system works.
You can rest assured that during the more than 500 pictures I took, trying to figure out if I did something wrong, I have tested having all flashes in the same group, in different groups, used A:B as well as A+B+C as well as 7D:s own mode of just consider all external flashes being one large group (literally the A+B+C with the internal not contributing) and so on.
No difference at all. That's not the issue.
I've also verified that the slaves do change form manual mode to E-TTL and back. No problem there either. Unfortunately, you can't see the power commands to the flashes when using E-TTL, so I can only confirm that the camera sends the correct power levels when the slaves are in manual mode. That works fine.
Besides, if all these different group settings and so on actually would make a difference, that doesn't explain why it works fine as long as I use a 580 EX II as the master flash, but not with the same ratio (A:B) setting using the internal flash. Or why it works (in many cases, although not all) with the slaves aimed directly towards the subject.
The problem is definitely in the camera. Let's now just hope this will filter through Canon's organization quickly enough, so that they can kill two birds with one stone, now when they are busting the ghosts out of the 7D images anyway. Better for them to issue one update than two.