When I saw 7 Tales as G2 I thought "Huh......."
I got into a 'discussion' about this on a brony forum. Apparently the only reason some of the new fans are calling Tales G2 is because they only go by the animation and do not take the toys or the whole brand into consideration. As in they are only animation fans and not fans of the toy.
The problem with that is, for most of us who have been into MLP for a long time the brand as a whole has always been defined by the toy, that has always been our reference. The toys were created first, even in G1 the animation came after the toys were already being made.
And if you are going by the MLP brand as a whole (which seems more logical to me) you know that the production of Tales overlaps with G1, as well as the toys for Tales (the character ponies from the show) are in Gen. 1 style.
The designated term Generation 2 only appeared when the ponies from the 90's - that are different from the original toys went into production. It was a completely different style toy from the originals.
I don't even know that we would have ever needed to Gen term really, but since hasbro did recycle some names I guess it started popping up because it was easier to explain what pony you were looking for or just in general so new folks wouldn't get confused over which ponies were being discussed on the forums.
Then when the G3's went into production it just kind of became tradition for us to call them Gen 1, 2 or 3. Just to make it easier on everyone. And yea, hasbro recycled names again. IF you say Minty now, you really do have to explain which pony you are talking about.
So the Generation term has only been used in regards to the toy - it was never used by the traditional ponypeople in regards to the animation. At least not in my experience.
Some New folks that don't know anything about MLP toys or the brand as a whole seem to have decided the Generation term only goes by the animation. I think part of the problem is a lot of the newbies clearly don't like anything prior to G4, don't want anything to do with anything that happened before G4 so in a certain way it comes across as a way to rewrite history and base the whole brand off of G4.
Personally I think it should go by the brand as a whole. Which means tales falls into G1.
Besides, even if you are going by the animation. Tales style is very similar to G1 even though the plot and ponies are set in a different background, it still pretty much looks like very similar animation to the original cartoon. So people that are being snarky about the term G2 are not taking the whole MLP reality into consideration. They're uneducated on history of the brand and just stubborn because they believe the only thing that should matter is the animation.