If you spin the center hub of the clutch, you are spinning the input shaft of the transmission. If the transmission is in gear and the center hub of the clutch is moved it should try to move the tires. If that's not happening, you have a problem between the cases.
Once you've wrung the end of the clutch pushrod off, there's nothing to lose by using all means necessary to extract it because it has probably spaghetti'd inside the input shaft and is going to be a pain to get out of there.
The best way to get the clutch pushrod out of the input shaft is to use the clutch lever to push it out a bit and then grab it with some good pliers. Once it's started out, don't stop. If the clutch lever won't even budge it, you'll have to split the cases. The input shaft is hollow end to end with the two shafts and the ball inside of it. Once you have the input shaft out of the transmission you can pin punch the rod out from the end.
7 ft lbs doesn't sound like too much on that clutch push rod. I probably put more than that on mine. I'm not sure what the book says for spec, but I wrenched down on mine because I had it back off on me when I was breaking my quad in and the clutch adjustment went to hell... I didn't want that again.