Upgrading from 1.7 will probably mean quite some work anyways. 

So I would go with 2.7 because it has a much faster SuperDevMode which is 
important because up-to-date Chrome/FireFox/Opera/Safari do not support 
classic GWT DevMode anymore.

The only really important difference between 2.6.1 and 2.7 (beside bug 
fixes and SuperDevMode improvements) is that 2.7 does not support Internet 
Explorer 6 / 7 and Opera <= 12 anymore. If you need to support these 
browsers then you can not use 2.7.0.

-- J.

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