RAR is a full-blown backup format* while 7zip is "just" an archive format. So comparisons are somewhat mood. But even I as a RAR fan and license holder have to agree. For the average joe, sending email attachments, zip or 7z is enough. * It can safe all three file timestamps (From nanoseconds precision (with NTFS), down to only 2 seconds precision (if you want to shave of a view bytes)), ACLs, ADS, Hard and Soft Link…
I think for the common use case of distributing giga bytes of data in a reasonably efficient way, 7zip is fine (e.g. simheaven.com uses that for huge scenery downloads). Where things get tricky is splitting the resulting archive in multiple files. This used to be common with rar and I think 7zip also supports this. That is convenient when downloading over a slow/unstable connection (or if you don't know how to resume…
And it also suffer the same problem from zip: the charset is undefined. Because they are older then the time utf-8 being the universal standard. Which means it mess up when two systems are in different charset and software is not smart enough to guess it.
These problems are all addressed in later format(rar/7z). Newer archive format most enforcing utf-8 charset. So you won't have a problem that file name suddenly turn into garbage for no reason.
It's probably the worst format you can chose if you need to distribute a file instead using it as a pack/extract on local only format(not even browse).