The new Blade component syntax in Laravel 7 allows developers to create reusable code by following the DRY principle, enabling faster development time and reducing repetition. The updated syntax introduces a class-based approach for creating front-end markup components, making it easier to inject data and functionality into these components. This improves upon previous implementations of Blade components, which relied on the @component directive. With this new syntax, developers can create custom classes and views that generate HTML components, allowing for greater flexibility and reusability in their applications. The updated syntax also enables injection of external data and functions into these components, expanding their capabilities beyond simple markup reuse.