When i contacted Apple support via chat last night - after 30 mins - they said the feature was removed - then said sorry.
No I can not go back to IOS 6, and restoring from old backup will not work either
When I asked how to lodge a complaint about the removal of this feature they told me to go to http://www.apple.com/feedback/ .
For me mail is useless now. I moved stuff to folders, but if I click and open that folder it loads it all.
So go to http://www.apple.com/feedback/ and lodge a desire/complaint explain the issue.
I will not buy another iPhone if this does not get resolved