The latter is a piece of junk, and anyone with much experience at guns can tell you that as soon as they pick up the AR-7. It's made of pot metal, with a junk rear sight, with looseness a guaranteed thing between receiver and barrel, and the front sight is on the barrel, the rear sight is on the receiver. The Papoose is out of production, but can be found on GunBroker.com and GunsAmerica.com, parts and mags at GunPartsCorp, or Numrich Arms. Forum at that last place can be very helpful with smithing problems, so can Brownell's Supply, but you have to get past the know-nothing order-takers! .
The Papoose has both rear and front sights on the barrel, so if it does develope some "looseness" from multiple dis and reassemblies, it won't effect accuracy. There's a real rear sight, too. The stock isn't offset, either The AR7's stock feels wierd because of that out of line stock.
You can rig a telescoping stock for the Pappoose, and cut one of your (two) barrels for it to 6", so that regular .22lr ammo is subsonic, and so a 6" silencer results in a gun that is still concealable under your jacket (on a sling) once you telescope the stock.
The AR's peep sight is slow to use, flimsy, hard to adjust, just a bad joke, all around.
You can rig a telescoping stock for the Pappoose, and cut one of your (two) barrels for it to 6", so that regular .22lr ammo is subsonic, and so a 6" silencer results in a gun that is still concealable under your jacket (on a sling) once you telescope the stock.