Is there any version of gtalk supporting multiple accounts which works with 2.3/cm7 Gtalk 1.3 doesn't support multiple accounts: it just connects with the main one, with no apparent way to switch it.

Upgrading to hangouts technically works, but it doesn't even bother to display user online status, so I'd rather have a real chat app.

Do I have any other option, running on 2.3.7 / cm 7.2.0?

If it isn't an official gtalk version, I'd appreciate if at least it was as good, integrated and non-bloated as it is, such as:
• integrated with address book
• downloads whole conversation (as opposite of just displaying new messages)
• plain and simple
Did you ever tried IM+
I still think hangouts is better, but since you don't like it may by you could give IM+ a chance. Now it will not download all your previous chats that you had on talk, but after you are logged in it should display all messages that you send, recive, even if you are not directly sending them from your phone.