Correct location of civicrm.settings.php in CiviCRM 4.7 for WordPress
The recommended location is wp-content/uploads/civicrm/civicrm.settings.php.

The deprecated location, still supported as of April 2017, was wp-content/plugins/civicrm/civicrm.settings.php, but this is both easy to break on upgrade ("whoops, I removed the old plugin and the settings files, and I don't have backups!") and on some sites is not a writeable location (where people prefer to not have WordPress able to modify its own codebase).

This can be seen in civicrm-wordpress/civicrm.php at line 103 and is documented in CRM-16408. Code docs refer to this as "the 4.6 and prior location" so I guess that tells us it's new to 4.7.

It looks like this was applied to all the related files, a WP site I set up the other day had everything in wp-content/uploads AFAICT, which seems like an improvement.

However, I noticed that civicrm.php looks like it gives preference to the deprecated location. IDK if there is a specific reason to this - it feels like it might set up a surprise for some sites if that behaviour ever changes?