I just discarded seven Wicked Response Action Cards because I’m a Kind Neighbor and I just got 7 more. What am I supposed to do?

This can happen. It’s a matter of shuffling and randomization. The majority of cards in the Action Deck are Kind and Wicked Deed cards, followed by the Super versions of each and then by a couple of each of the Miscellaneous Action cards. You will need to play the Wicked card during the Respond and hope to get Kind Deeds next round.

Why are we either trading in Clue Cards OR Action Cards? Why not both?

This is a matter of style and/or strategy. You need to make your decision based on whether you can make use of the Clue Cards you have (repeats be damned) or if you can live with your Action Card arrangement for the round.

A little bit of resource management will go a long way.