Sounds to me like you found a way to start forgiving yourself. Remembering the experience gives you a chance to nurture the child you were when you were seven with the more adult logic and understanding of the events.
As already pointed out at 7 years of age there wasn't much you could have done. As a bystander we will always look back and wonder what we should have done. When in fact he had done exactly what we could have done with the knowledge and abilities we had at time.
Yes you probably were punishing yourself. Now your dues have been paid. It's time to forgive yourself and allow yourself to have the success you deserve.
Continue to work through the course and for that incident if you haven't worked through it yet do an Inquiry Process.
Alex
