Who is the second worst? Kwan? Not sure that statistic is all that illuminating.
The next worse I can think of going back to 1956 would have been 1964. This was a couple of years after the '61 plane crash that took our entire team.
15 year old Peggy Fleming finished 6h and then went on to win the OGM in '68.
If this helps your perspective here is a list of US Olympic medal winning Ladies going back to 1956.
1956 - Tenley Albright wins Gold and Carol Heiss wins Silver.
1960 - Carol Heiss wins Gold
1964 - Peggy Fleming finishes 6th
1968 - Peggy wins Gold
1972 - Janet Lynn wins Bronze
1976 - Dorothy Hamill wins Gold
1980 - Linda Fratiane robbed of Gold but wins Silver
1984 - Roz Sumners wins Silver
1988 - Debbi Thomas wins Bronze
1992 - Kristi wins Gold, Nancy wins Bronze
1994 - Nancy wins Silver but was the better skater that night
1998 - Tara wins Gold, Michelle Silver
2002 - Sarah wins Gold, Michelle Bronze
2006 - Sasha wins Silver
2010 - Rachale Flatt finishes 7th
Does that give you a better understanding that a 7th place finish at the Olympics is disappointing for a US Lady champion? We have t go back, way back for such a poor showing from our champion.
Perhaps a new era is upon us with a shift to Asia. But I wouldn't count out the US Ladies just yet. Not with Mirai ready to blossom and Christina improving by leaps and bounds under Orser's training.