That is because if the CODEC iMovie uses for exporting .avi files, as .avi is only a container/format to store video and audio (AVI = Audio Video Interleave) using lots of different codecs. The most prominent ones are Divx and Xvid, which are highly compressive.
Open the .avi in QT Player and/or VLC and press CMD+I to see, what codec is used.
You can use MPEG Streamclip to further the compression if you want, using whatever codec you like and depending on where that video goes to.
Btw, 151MB for 7 minutes of video is quite low. That is less than 15KB per frame if one uses 25fps.