record is a big factor, when talking about seeding. if you are not taking it into account, you can't get the complete picture.
anyway, if you look at your schedule, i think a 7 seed is pretty reasonable. through conference play and the CT, you have roughly 4 quality wins (none exceptional), and 4 losses to team who are probably not making the tournament, but are not terrible losses. its really not a strong showing for the later part of the season, my guess is that's why you got a little bit worse of a seed than your rpi would suggest.
edit: the guys saying the ct loss is a big factor are definitely right on as well