What I was thinking of was Barrie Gilbert's chapter, "Where do the small circuits come from?" in "Analog Circuit Design: Art, Science, and Personalities", P. 179-180:
"How many distinctly different and really useful circuits can be made with two transistors, anyway? (Answer: about twenty-four). What heady heights of functional complexity can be reached with three, or even four, transistors? And heaven forgive us for being so gluttonous, but what might one do with _eight_ transistors?"
He didn't actually mention seven--you lose. ;)
Cheers
Phil Hobbs