Actually, the Radeon 7500 uses the RV200 GPU, which has the Rage Theater embedded in the core in the same fashion as the RV100 chip (Radeon Ve)
The Radeon 8500 uses the R200 GPU, and has the seperate Rage Theater chip, just like the R100 (original Radeon)
So, the Value series GPU (RVxx) simply has the Rage Theater embedded in the core, and also why the Ve and the 7500 supported 1024 X 768 via TV-out long before the 8500, and until recent driver fixes, had the superior TV-out solution.