Its a fair question. How about asking someone who should know like the company that makes it and let us know.
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I have no idea how it works but I've brougth one over to 5 friends homes and every one heard an improvement and bought one, some rooms were more subtle that others and some were jaw dropping good!
PS: If you live in the Boston area I'd be more than happy to bring one by for a listen (as soon as I recover from some back surgery).
I don't own this device nor have I heard it. I do remember reading a review of it a while back - mildly interesting.
My thought is that it's not that hard to make a surface (diaphragm) vibrate at 7.83 Hz and this will "attempt" to create a 7.83 Hz waveform. Just because the wave cannot fully propagate in a given space doesn't meant that it's not having an audible effect in that space. If the company claims that there is a complete 7.83 Hz wave in that room then they need to go back to physics class. Also remember though that the lower the the frequency, the more acoustically transparent walls would be to that wave.
Note that this doesn't address the amplitude of the wave produced. The size of the "driver/diaphragm" would directly impact that (as was indirectly pointed out by Bluewolf in the OP). So, even though the wave will propagate outside of the room, I doubt the amplitude of the wave would be very large.
The Schumann frequency produced by the device is not an acoustic wave which wouldn't be so mysterious. But the wave the device produces is apparently an electromagnetic wave, hence the long wavelength. If the wave were acoustic of course the wavelength would be much, much shorter. Now, having said all that you can buy a CD that will produce the acoustic version of the Schumann wave using just ordinary speakers, even computer speakers. Whether that acoustic Schumann wave has any effect on the sound is strictly up for grabs. It's quite possible the Schumann wave must be electromagnetic, like the real Schumann wave.
Thank you to all, & particular thanks to Sksos1 for your very kind offer to come and listen to your unit, but I live in Hong Kong. Let me know if you are ever over this way. I recently bought a RR-888 and am still experimenting & listening, powering it with my KingRex PSU MK2. I find that I enjoy this hobby more, the more I know about my components and hence the original post.