Do these measurements also apply for an RV and TOAD?
Yes and no. A recreational towing setup is a little different because the tow bar is going to connect straight to the base plate kit as opposed to a hitch ball sitting inside the coupler. The same principle will apply for a recreational towing setup though. You will want to take these measurements and make sure that your tow bar is within 3" of being level. Here is an FAQ about the tow bar side of things that you can check out.
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If the drop is 7" should I choose a 6" or 8" drop?
I'd go with a 6" because your tow vehicle will naturally have a little drop once the tongue weight is applied.
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