I have never lapped an i7 chip but I'd keep going. My last lap job was the opposite of yours, with the sides being the high points. With the AMD chips though, you just go until there is no Nickel showing anymore, just pure copper.
I've never lapped an i7 though.
BTW. If you want to, you can always stop and install the CPU back into your system. If you don't see any results from lapping then you can continue trying to flatten it a bit more. If the razor blade doesn't show light expect for right at th edge of the chip, then you're probably ok. Just so its not showing light in the middle of the chip.
EDIT: After reading some other threads and forums about lapping the i7 it seems like some people go overboard, lap too far, and end up with poor results. It seems like for the i7 there is minimal gain from lapping, which means that the chip generally comes very flat from Intel.
In my own lapping experience, I have gotten only 2-4C. In some of the threads I've read, lapping the CPU too far has even contributed to higher temps than stock. With that being said, perhaps you would want to avoid going too far and simply polish up that finish a bit.