This is unfortunately expected behavior when CAP_SYS_RAWIO is valid. The patch that was applied to RHEL6 was rejected upstream and is not in RHEL7. Example:
# capsh --drop=cap_sys_rawio -- -c '/usr/libexec/qemu-kvm -M pc -enable-kvm -m 2048 -smp 2 -drive file=/dev/vg-root/rhel5-x86-64,id=root,if=none -device virtio-scsi-pci -device scsi-block,drive=root -S'
qemu-kvm: -device scsi-block,drive=root: scsi-block: INQUIRY failed
qemu-kvm: -device scsi-block,drive=root: Device initialization failed.
qemu-kvm: -device scsi-block,drive=root: Device 'scsi-block' could not be initialized
(put the capsh command on a single line).