I probably would have also checked the river, because a smooth call after the turn would have thrown red flags at me. Limping pot, 7 handed increases the flopped set possibility exponentially. For me the only time you consider a set is if they give away their strength postflop or it's multihanded to the flop like this. I would have lost as much as you did anyway. I can't see myself getting away from two pair aces and eights on that board. That's just asking too much.