Mode 7 does scaling and rotatating off the backgrounds(bg layer). You can see it all the time in Super Mario Kart. Contra III got it on the top down levels. You see it in R-Type III where the background spin and such...
BTW Star Fox uses Super FX and not Mode 7. And yea is a geat game
Insted of rehashing the info in wikipedia ill point at it.
http://en.wikipedia.org/wiki/Mode_7
"Classic Mode 7 games include the Super NES titles Super Castlevania IV, Secret of Mana, Final Fantasy IV, F-Zero and Super Mario Kart."