Why does class G airspace end at 700 around class E airports?
Not all Class G airports have Class E airspace down to 700′ – only those with a published instrument approach. Most non-precision approaches come down to that altitude and if the airport isn’t in sight the pilot has to execute the published missed approach. If there is VFR traffic they have to be in class G airspace (ie below 700′) since the requirement in Class E is 500′ below cloud (Class G is clear of clouds). 700′ AGL is too low for traffic pattern work so it effectively keeps VFR and IFR traffic safely clear of each other when weather is at minimums. If Class E extends to the surface then there is most likely a precision approach (down to 200′) at that airport.