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One hand stands out that I remember from the villian. He had 1675 in chips with Q7o. Blinds were 100/200. CO pushes 625 and villian calls.

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Calling 425 to win 925 with what are likely two live cards doesn't seem like something that should stand out.

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1) So am I correct to read that this guy is capable of calling with sub-optimal hands?

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What do yo mean by sub-optimal hands? If you're pushing nearly 100% of hands, he's right to call with a range wider than you give. It doesn't seem to me that hands outside your given range are sub-optimal for him.
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2) Do you push this anyways?

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I think so. A factor for me is the big stack to your right which might mean you get fewer opportunities than normal.