The solution of course is to make the conspicuity code 1200, like the sensible Americans. Shows that the original selection of 7000 wasn't thought out properly in the first place.
The problem is not just the emergency codes. If you leave the wrong code selected and it belongs to an IFR flight on the ATS route network, radar systems that detect it may match it up with the a flight in their database, with the potential of a lot of confusion.