Is there a module similar to the Tiered Taxonomy Block module for Drupal 7?
Not sure if there is a better solution but this can now be done in a round about way with views. 


Create a term view.
Add a required relationship to its parent term.
add a required relationship to node.
add term title for both term and parent term relationship and term count.


You'll have to display the hierarchy at the theme level unless you want to use group headers.