If you're running into a limit when the number of items is greater than 5 be sure you have set the ItemCountThreshold as this restricts the number of items you can have in a the control in the standard view. The default value for this is 5 so increasing it to 6 should address your issue.
I just used the ListPicker from the August 2011 version of the SLWP7 toolkit with seven items, so I don't think your hard limit of 5 is correct in general, though it might be specific to being in a panorama item. When you say it doesn't work, do you mean nothing happens when you try to use it (ie doesn't register the Tap event), or doesn't display at all?
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