My suggestion: In future Redhat releases (or even in an interim update), it would be good to build sendmail with support for Transport Layer Security (STARTTLS) and Authentication (AUTH). It's nice that Redhat 7.0 is up to sendmail 8.11.0, but it would be even nicer if it was built with sendmail's new support turned on for TLS and Authentication. It would significantly enhance email security and privacy if those features were available by default in Redhat systems. Thanks.
Hmm. Upon further study, I see that sendmail _is_ built for AUTH (although not for TLS). It would still be nice if sendmail was by default built for STARTTLS, though. I didn't see AUTH in the reply to EHLO because there was no file /etc/sasldb. Once I created that file (using saslpasswd) AUTH was presented in the EHLO capability response.
The current rpm should be ok. Requiring saslpasswd should also be ok. Please open a new bugreport is anything is still missing.