"Win7 wouldn't either:
1) It didn't want to even install ANY 16 bit windows software.
2) Some Win32 wouldn't install."
That's because 64-bit Windows doesn't run 16-bit code, be it Win16 or DOS software. 32-bit Windows runs Win16 (and DOS executables).
Some 32-bit software used 16-bit installers and those fail. You can either a) install 32-bit Windows 7, or b) install the free XP Mode virtual machine. 32-bit Windows has it's drawbacks regarding RAM, and the XP Mode isn't fit for games.
"3) The majority of the Win32 SW (Windows only and often no new version) wouldn't work at all after install. Both CAE and games."
Which games and CAE programs didn't work with Windows 7 but did work under Wine?
I have played some pretty old Windows games with Win7 and later operating systems. Games such as Ultima IX, Half-Life, Settlers 2(3?) and so on. I once had a 32-bit Windows 8 laptop just for Civ 1 for Win3.11. Some games have required fiddling with e.g. copy protection cracks and such.