Is there any other way to create WDL files without spending the 100$ for WED? I don't think MED can output them, and I don't think theres a free version of WED. So is the only way to get a WDL is to buy GS 7?

You can use SED. You can also use notepad but you can't execute a script from note pad.

I mean visually. Of course you can use SED, but you have to know the x and y coordinates of everything, which takes a lot of time to adjust properly.

Technicaly one could write a converter and build the level in any mayor 3d modeling suite. WED makes it a little more easy for placing objects and assign actions or skills to them. There is also GameEdit, but still beta at the moment.