The label in the machine only lists the dipswitches that are implemented in your machine software. So, if a dipswitch is not mentioned it doesn't do anything. Dipswitches 1,2,3,4,5,6 are all read by the mpu game software if the dipswitch is utilized.
Dip#8 enables or disables the mpu reset circuit. You want this set to ON for normal game operation, OFF setting is used when troubleshooting the mpu. Dip#8 position does not matter if jumper S1 on E-2000 mpu boards is installed (S14 on E-1000 mpu boards), since the jumper permanently connects the Dip#8 switch circuit ON anyway. A tech would remove this jumper if he needed to set Dip#8 OFF. S1 is located near the dipswitch on E2000 mpu boards.
Dip#7 is not connected to anything on the E-1000 or E-2000 mpu so it can never be used unless a mod was done to add wires to it.
The unused switches were in case of future use on different game software but were not implemented as far as I know. But there are a lot of different gaming jurisdictions and different games out there so there might be a setting for an option in some machines somewhere, Bally sold their machines all over the world.