"So, If beach club is avail at the 7 month mark then it will not be a problem or penalty if I switch from SSR to beach club? Will I not have a good chance getting beach club if I'm on the wait list?"
As to first question, all you do when you call at 7 months is find out if there is availability at BCV, and, if so, you just cancel your prior SSR reservation and then reserve BCV at the same time without any penalty.
As to the second question, if there is not anything available at 7 months out for when you want to, you can be placed on the wait list and your chances just depend. There have been many reports by people having luck with the wait list but there have been just as many of people who did not.