As far as I remember these settings are used in former versions (like AS4/5/6).
With AS7 the configuration is different and you might change the standalone.xml by editing or using the management tools.
I was looking for a command line argument that i can use to change the log level.
you can use JBOSS_HOME/bin/jboss-cli.sh -c --command="/subsystem=logging/....."
if you use the interactive mode you can use the tab-completition to check the commands before using the command line.
Also you can create batch files to do more commands and use the --file=XXX parameter