You can have your cake and eat it to!
If you wished you could make an sdcard with Cyanogenmod 7.
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Do I need to Root my Nook?!?
Nope! By following these instructions, you are creating an SD Card "Boot Disk". If you put the SD Card into the Nook, it will boot from it. If you take the SD Card back out, you will be back to a normal Nook. Barnes and Noble will never know!
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Directions for CM7 sdcard
I personally havn't tried the running CM7 off the sdcard but I have rooted and installed CM7 straight on my nook. I did like the CM7 but cant tell how it would be different from using it on sdcard.