Hmmmm. I'd neither raise nor cap this preflop - although I can see the argument at least for the raise. In this position I'd rather raise high cards for deceptive value than AA34o.

Nothing wrong with a fold on the turn here, although your play is certainly more entertaining. By the time he has called a bet on the turn I wouldn't bet the river. I think you'll see jacks (or, less likely, 9s) full of 7s a lot of the time. Many limit players will bet trips and then go into calldown mode until the board pairs when you represent the straight. And in such a big pot you have no chance of folding a better hand. I'd check/call the river (and wouldn't like making the call but difficult to fold for one bet on that size pot).