This is not a problem with the M7 since that's not what the M7 is designed to do. That's a problem with how odometers have worked since day one, there's nothing's new in that regard. They all interpret the data collected by the sensors differently. The M7 chip doesn't to the interpretation, it only collects data from the sensors. It does this whether the main CPU is sleeping or not, and the applications that uses the data doesn't have to be running for the collection of data.
Actually, the iOS Core Motion API does provide a step count for iPhones with the M7 (however apparently it does not provide that info for iPads with the M7).
Whether the interpretation is done by the M7 itself, or the main processor from the data that the M7 collected, is unclear.
The problem with the m7 currently is that individual apps seem to have to interpret its movement data. I can get wildly different step counts between apps using the m7 as the data source. Makes it kind of useless.
It all depends on whether or not the apps are using the step count provided by the OS. If they do, then they should all be in sync.
However, some apps have their own step analysis code that predates the M7, and they might be still using that in order to work on more devices.
Interesting that the codename is phosphorous. Perhaps a play on pure phosphorous' reaction to oxygen (atmosphere)?
Ah, good one.
Are there any obvious medical uses for such sensors where you wouldn't require an external accessory for a more direct measurement?
I can't think of any. I doubt it has anything to do with health.
I find myself wondering how much reliance they can use on weather data pulled from the network. But then that puts me back to questioning why they would include the pressure sensor, so I don't know. It would be quite cool to see a phone monitor those conditions and alert the user to storm-like conditions when things rapidly change.
We had a big discussion about this not long ago. See this thread:
Evidence of iPhone 6 Atmospheric Pressure Sensor Found in iOS 8
The upshot is that, while of course it can be used for things like weather, pilot calculators, hiking apps, etc... instead I think the main reason for Apple including such a sensor, would be indoor navigation.
Apple has bought a lot of indoor nav companies, and these sensors can easily tell that you've moved between floors by the relative change in pressure.