Watch the Cascade online guitar lesson by Adam Levy from 30 Songwriter Sideman Licks You MUST Know
Capoing halfway up the fretboard is a great way to get up and out of the way of another guitarist (the singer/songwriter, for example) who's strumming chords in open position. That's the primary tactic here. Remember, Capo VII means the chord shapes seem to be in the key of G but you're actually in the key of D, a fifth higher. Also, this lick is spacious — leaving plenty of room for other elements in an arrangement (voice, bass, drums, and so on).