Strip path segment while extracting using 7zip?

This can be done by using the GUI.

1. Navigate within the archive to the directory you want.
2. Select either that directory or its contents.
3. Either
   • drag-and-drop it (or its contents) to a folder in your file manager; or
   • use the 7-Zip GUI's Extract button.

(Apologies in advance if a graphical solution is no good; I wasn't sure from my reading of your question.)

This sounds like a job for the command-line:

7z x archive.7z
cd <directory name>
mv * ..
rmdir <directory name>

yes, this sounds like your "do I have to extract with the unwanted path segment, move the contents to the right place and delete the directory?"