There's 1 flaw in your above logic: if you buy and hold for 7 years, the chance that VIX will double or triple over a relatively short period of time is probably about 80% - meaning that you will lose a large portion of the gains or have huge losses during a short period. Except for minor blips here and there, for about 50+ years, housing generally didn't go down and people thought it could never go down over a sustained period ... until it actually went down.
You may want to look at XIV, since it trades teh same as SVXY and has a longer track record.
In June 2011 the spot vix more than doubled and XIV lost 75% of its value (from about $20 down to about $5.
For those people who cashed out, they incurred the lss.
For those people who hung on, XIV is now about $29 (about a 45% gain in a little over 2 years). I do not know many investors that would complain about having a 45% gain over a 2 year period (even after going through a black swan event).
Thus, the key is to buy the stock and limit any options you buy to money that you can afford to lose.
you're right it's not easy, but easy and possible are two different things.very few are willing to watch all of their wealth disappear during a market crash taking place in the present so that they can become millionaires at some distant, unseen time in the future. that's why bobwins is afraid to go 100% into SVXY. even tho he sees the potential. the few who can take that kind of risk will receive a proportionate reward.