I don't think adcoms ever really viewed 700 as some magic score cutoff or check box on the application. That seemed to have come more from MBA internet forums (including this one) that gave the score of 700 such mystique. If you look at most top schools average scores, they're just above 700, meaning there's a good portion of scores below 700. At Kellogg, which details out GMAT distribution of the class, about 1/3 of the class scored below 700, and nearly 10% scored below 640.
So yes, all other things being equal, adcom will prefer the higher GMAT score. But since we're talking about people here, the probability that you'd have two applicants who are exactly the same except for GMAT score is pretty slim.