Currently A7 supports vertex animation or bones for animation.
I was able to achieve combined animation with lipsyncing and facial expressions with bones and weighted vertices for a customer and I think the same technique is applicable to body morphs.
You would make one frame for a general neutral pose and then for each adjustable bodypart another frame with the bones being adjusted. Each character would then save a percentage (like breast size = 90%, stomach size = 60% and hip size = 90%.. for e.g. a woman
) for each body part. Each frame the current animation pose would then be ensembled by the animation state, a possible animation blending (from one state to another (e.g. idle -> walk) and last but not least the body part scaling.
Additional stuff like facial expressions and head tracking or else would be just the cream of the crop.
This is doable with A7, but require much handwriting, since these "features" are not delivered out of the box. I could provide you my facial expressions demo if you are interested. I cannot post any material here because I never found money to finance a modeller to create sufficient models and characters to make a public demo and therefore I use my old client's material to show off.
Bye,
Christian