It looks like the setdirection function is not correct in your attached sdk code. I believe the LED should be 0x0 and SWITCH should be 0x1. Here is the Getting started with zynq tutorial. Below is the SDK code for linking the switches to the LEDs and btns to the uart usb bridge.
I have attached a screen shot of the vivado block design.
I would suggest using the Digilent board files for the Arty-Z7-10. The installation tutorial is here. You would not need to use an xdc file and the board tab would allow you to easily add the switches,led and buttons to the design. The getting started with ZYNQ tutorial linked above is basically the same process for the arty-Z7-10 just different number of components and a different zynq board.