We used to live in LA and do that drive many times. I think you are trying to do too much for 7 days. I could spend a week in San Diego, or San Francisco alone.
In San Diego, I like to go to Sea World and the Zoo which each take most of a day. Plus, I like some beach time, take a harbor tour, lollygag. I think that you need at least 2 days to sightsee in SF and you will only see the tip of the iceberg. I would definitely skip Napa and spend time going up the coast. Plus, you are not leaving anytime to sightsee in Los Angeles.
Here are the places that we would stop if we had time to lollygag up the coast. We would stay overnight in Santa Monica, Santa Barbara, Cambria (near Hearst Castle and do that). In Carmel/Monterey area, if it was just us as a couple - no kids - I would definitely book a bed & breakfast in Pacific Grove. It is a lovely romantic area that is right beyond Monterey. We have stayed in the Seven Gables Inn. After we stayed there, it was featured on a Visa ad. In Monterey, you can do the Aquarium, Fisherman's Wharf and the cannery in one day. I would use another day to tour the 17 mile drive and Carmel plus the state park (I cannot remember the name) just south of Carmel (it is known for wind twisted trees). On the way to the Monterey area, don't hesitate to stop at Nepenthe in Big Sur for lunch. The views are spectacular.
As to the drive itself - you have definitely picked the right direction to do for someone who isn't used to driving it. Highway 1 is very winding, especially up by Big Sur. However, you will be on the inside, less intimidating side, of the road. As long as you drive near the speed limit, it is very enjoyable.