Got this reply from tech support...
You are correct the new driver has changed and it does not offer the advanced settings. This was done by design. The programmers removed the advanced settings so users would use the default axis directions.
Try this it may work for you:
Close all applications except Solidworks. Then close Solidworks, next go to the 3DConnexion properties. At this point, you have all of the traditional advanced options available. Change the Zoom direction.
Reopen Soildworks this should now use the default setting for Zoom.
Technical Support Help Desk
I had to try it twice... but it did work.
Thanks for this. I use my spaceball the same as you for zoom.
This probably saved me a bunch of troubleshooting time!
Seriously, up and down to zoom in and out makes the most ligical sense, why would they remove that.