No, it has an SVG extension!!! Where are you looking? Are you thinking that the page title (in the URL) is a suffix?! WP article pages don't have suffixes anyway, because they're dynamically generated.
No, it does not. I think I know my way around Commons. Click on the image as it is displayed on its holding page and you get the SVG version: http :// upload.wikimedia.org/wikipedia/commons/6/68/XML.svg That's an SVG and it displays correctly in IE *provided* it is loaded as any other object on a webpage. It only present a problem if someone tries to view it separately, as Pesala found.
This is well known to anyone who contributes regularly to WP and/or Commons and we would not use SVGs if they could not be displayed within a page in IE7. The fact that IE7 users cannot easily open or download the image file itself is a fairly minor issue. It would be nice to be able to sort that, but that's up to Microsoft.