I use this to track vocals, electric guitar and bass cabs, floor tom, kick and misc percussion instruments. It does very well in all these applications, it's a real workhorse. Plus, it impresses the clients.
It's not the most neutral mic, it has a 'sound'. Warm and vintagey, I suppose. Not as detailed as a condenser, but still surprisingly detailed for a dynamic mic. On the right source, it often sounds 'right' straight away, I guess that's because I've been listening to it on countless records all my life! It takes EQ and compression well in the mix, and usually sits really well with a minimum of pulling and dragging.
It doesn't work on everything, I've found it to be pretty poor on acoustic guitar for example, and it often loses out to LDCs on vocals. BUT, on the right voice, it's terrific.
It's decent on floor tom, although it seems to pick up a lot of spill from the rest of the kit, snare and hi-hat especially.
If a band want to track a song live, I tend to use the sm7b on the lead vocals as it sounds great, but doesn't pick up as much bleed as an LDC would. For the same reason, it's great for recording in untreated rooms.
I like it a lot on guitar and bass amps, much more than the sm57.
For vocals, I use it with a GAP Pre73 mkiii that provides more than enough gain. For loud sources like drums and amps, my Focusrite Scarlett and Presonus D8 preamps have provided plenty of gain when the Pre73 was on other duties. It sounds 'darker' through the Pre73 than the other preamps.
For me, this has been a worthwhile investement. The only problem is now I want more large diaphragm dynamics!
Pros - versatile studio workhorse with a classic sound. Great on the right source.
Cons - requires a preamp with plenty of gain to reach its full potential.