This android developer's blog entry describes what's new in the version 7.0 of Google Play services.
GoogleApiClient
In one of my projects i use this
compile 'com.google.android.gms:play-services:6.5.87'
It's the whole package and I'll pick only the modules I need before deployment. Works fine against target API 22.
The farthest version I'd go with would be
compile 'com.google.android.gms:play-services:6.1.71'
GoogleApiClient
So should I use an older SDK?
Absolutely not, this is not an SDK related problem. Keep everything (build tools, compile SDK, target SDK) to 22.
is there a better way to handle this than asking my users to update their Google Play Services?
See above, use older version of the library with your project.