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After days trying to find a way to root the Coby Kyros 7016, I've finally found a way to install the market!
Neither z4root nor gingerbreak worked with it. I don't think there's a way to root it, at least not now.
But you can install the market (which I guess is the main objective, at least mine was) in a very simple way.
Download the file using the following link Market.rar - 4shared.com - online file sharing and storage - download.
Put them into your tablet.
Open APK Installer and install all of them in this order: OneTimeInitializer.apk, SetupWizard.apk, GoogleServicesFramework.apk and Vending.apk.
Turn your tablet off and turn it on again.
A window saying "Complete action using" will appear, mark "Use by default" and choose the "Launcher".
I hope it helps!
PS: I've heard it works also on the MID7020.