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Both is the short answer, but essays are more important. Your GMAT is what gets you a first look. It can break you, but it cant make you. Your essays can stop an otherwise good app in its tracks, If they suck there is not much to mitigate. If they're outstanding, you'd probably have to be u acceptable in several other metrics to dinged.
Cartwright is on the money here. Get 700+ on the GMAT and set it aside. The real effort should go into your essays as these will make or break your application. If they suck, you're pretty much fucked. On the other hand, if your GMAT is borderline ok (think mid 600s) but your essays rock, you have a good shot at the M7.
The GMAT is a hurdle, the essays are what get you in.
Tough to say on GMAT b/c we don't know the OP's background. If he/she comes from a finance/consulting background like a lot of the people on this site, a 700+ GMAT score will be necessary to "check the box" and get the M7 schools to seriously consider you. If you're a non-traditional candidate, you'll be lumped into a different category than the finance/consulting guys and you may not necessarily need a 700+.
In any case, first round deadlines are still 5 or so months away. You have time to focus on the GMAT, so put the time in, get the best score you can, and then evaluate whether it's more worth your while to keep studying for a re-take or to focus on your essays as the app deadlines approach.
In a nutshell though, the GMAT will not make you but it can break you. Well written essays can actually make you stand out, but if you don't put the time in and they are sub-par they will hurt you.
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