The volume of each cube follows the pattern of $n^3$, for $n$ is between $1$ and $7$.
We see that the total surface area can be comprised of three parts: the sides of the cubes, the tops of the cubes, and the bottom of the $7\times 7\times 7$ cube (which is just $7 \times 7 = 49$). The sides areas can be measured as the sum $4\sum_{n=1}^{7} n^2$, giving us $560$. Structurally, if we examine the tower from the top, we see that it really just forms a $7\times 7$ square of area $49$. Therefore, we can say that the total surface area is $560 + 49 + 49 = \boxed{\textbf{(B) }658}$.
Alternatively, for the area of the tops, we could have found the sum $\sum_{n=2}^{7}((n)^{2}-(n-1)^{2})$, giving us $49$ as well.
~ciceronii
Note: The area on top and bottom are 49 because the largest area is 49, and the other cubes are "inscribed" in it.