I can't claim to understand everything....but I know that our consciousnesses do not stop. That much is very clear in the Bible. As far as no more tears, etc., that is clearly applying to those who are in heaven with God:
"and I heard a loud voice from the throne saying, 'Now the dwelling of God is with men, and he will live with them. They will be his people, and God himself will be with them and be their God. He will wipe every tear from their eyes. Thee will be no more death, or mourning or crying or pain, for the old order of things has passed away.'"Rev. 21:3-4
For those who refuse Christ, however --
"As the weeds are pulled up and burned in the fire, so it will be at the end of the age. The Son of Man will send out his angels, and they will weed out of his kingdom everything that causes sin and all who do evil. They will throw them into the fiery furnace, where there will be weeping and gnashing of teeth. Then the righteous will shine like the sun in the kingdom of their Father."Matthew 13:40-43
In a number of verses, those who rebel against Christ are thrown 'outside, where there will be weeping and gnashing of teeth.'
In Mark 9:47-48 we read Jesus' warning:
"And if your eye causes you to sin, pluck it out. It is better for you to enter the kingdom of God with one eye than to have two eyes and be thrown into hell, where 'their worm does not die, and the fire is not quenched.'"
I am not sure which word you feel are invalidated in Matthew 7 by this, but I do note that in verse 23 Jesus tells the false teachers "I never knew you. Away from me, you evildoers!". This again, being separation from God forever is eternal death, but not unconsciousness.