There's more to it than this IMHO. Here is my explanation:
If I go back in my Time Machine backups and restore the previous version before I installed iTunes 11.4, the version of that same kext was also listed as being "7.0" despite being older and twice the size (120400 bytes vs. 63024 bytes in the 11.4-installed version).
(The older version is "BuildVersion 305" and "SourceVersion 122000000000000"; the new 11.4 version is "BuildVersion 417" and "SourceVersion 113000000000000".)
The real problem is this:
/System/Library/Extensions/AppleUSBEthernetHost.kext/Contents/_CodeSignature used to contain
-rw-r--r--+ 1 root wheel 172 Jan 31 2014 CodeDirectory
-rw-r--r--+ 1 root wheel 92 Jan 31 2014 CodeRequirements
-rw-r--r--+ 1 root wheel 1745 Jan 31 2014 CodeResources
-rw-r--r--+ 1 root wheel 4064 Jan 31 2014 CodeSignature
/System/Library/Extensions/AppleUSBEthernetHost.kext/Contents used to contain symbolic links down into there:
lrwxr-xr-x+ 1 root wheel 28 Jun 12 2012 CodeDirectory@ -> _CodeSignature/CodeDirectory
lrwxr-xr-x+ 1 root wheel 31 Jun 12 2012 CodeRequirements@ -> _CodeSignature/CodeRequirements
lrwxr-xr-x+ 1 root wheel 28 Jun 12 2012 CodeSignature@ -> _CodeSignature/CodeSignature
When iTunes 11.4 was installed via Software Update/App Store, it removed CodeDirectory/CodeRequirements/CodeSignature but it did not remove the corresponding symbolic links. Presumably that is what triggered the "cannot be used" pop-up message.
Trashing the kext and installing it from the downloaded 11.4 .dmg does not create the symbolic links, thus avoiding the problem.
Obviously rolling back to the previous (Jan 2014) kext will fix the problem as well as the symbolic links point to files that exist.
(I'm really curious to know what happened between BuildVersion 305 and BuildVersion 417 that caused it to shrink nearly by half. It looks to me like the Code Signing stuff got ripped out - Lord knows why.)