> Microsoft holding back support is the xHCI USB controller in sixth-generation Skylake and seventh-generation Kaby Lake: Windows 7 doesn't support that USB hardware, so installing the operating system from a USB stick using those chips is tricky. Intel provides xHCI drivers for Windows 7 once it's up and running.
AFAIK, consumer editions of Windows 7 never even officially came in a "USB stick" form factor. It has always been on a DVD.
So the more salient question would be: is it possible to plug in a USB external ODD to a Kaby Lake laptop, pop the Windows 7 DVD in it, and install from it? Or is it just as "tricky" as installing from a USB stick?
I don't know what the newer systems do, but on older ones that had USB boot support, the BIOS has a basic USB driver that lets even DOS apps access CD/DVD/USB media via the traditional INT 13H interface.