yes. My understanding is once 485 is denied, 7+ yr H1 is gone to

You will fall into unauthorized stay, the base for H1 extension is disintegrated. I know PJIANG has different opinion on his blog.
So, you make own decision on EAD or H1. EAD will qualify you work in industry.
An excertion:

...This second benefit is not available for those aliens whose I-140 has already been approved because in all likelihood, I-485 will be denied on the I-485 issues rather than I-140 issues. Denial of I-485 is not appealable and the alien falls into unathorized alien status instant to the denial of I-1485 application. There can one situation wherein such alien can still benefit from the maintaining H-1B status within the 6-year limit. If the alien is eligible for 245(k) benefit of eligibility for another I-485 application inasmuch as unauthorized stay was less than 180 days or unauthorized employment was less than 180 days since the lastest admission to the United States, the alien can try another I-485 application if the denial of previous I-485 can be overcome or the new I-485 is filed on a separate labor certification application or I-140 petition. Sometimes, people try a motion to reopen of I-485 denial, but another option is filing a new I-485 application inasmuch as one has maintained a valid nonimmigrant status or is eligible for 245(k) benefits. The aforementioned benefits are not available to the aliens who are in the 7th-year extension or three-year increment extension of H-1B as the USCIS is authorized to grant such AC-21 extension "only pending" adjudication of the underlying application (labor certification application or I-485 application) or petition (I-140 petition). Once such underlying application is denied, it loses the grounds for AC-21 H-1B extension benefits.