If $G$ is a simple group, it must have exactly $7$ Sylow $2$-subgroups. Thus $G$ embeds into $S_7$, and in particular into $A_7$ since $G$ does not have a subgroup of index $2$. But the order $A_7$ is not divisible by $112$.
If you want to go along the lines of your original idea, you can rule out the case $|P \cap Q| = 2^3$ by noticing that then $P \cap Q$ is normal in $P$ and $Q$ (as a subgroup of index $2$), so $N_G(P \cap Q)$ contains $P$ and $Q$, which implies that $N_G(P \cap Q) = G$.
ADDED: I'm not sure if there is an easy way to deal with rest of the cases. However, there is a nice argument which also works for proving that every group of order $p^n q$ ($p$, $q$ distinct primes) is nonsimple. I believe the idea of the proof goes back to G. A. Miller (around 1900-1910). Here's an illustration of it in this case.
Suppose that $G$ is a simple group of order $112$. Then $G$ has exactly $7$ Sylow $2$-subgroups. Let $P, Q \in Syl_2(G)$ be such that $P \neq Q$ and that $D = P \cap Q$ has largest possible order. Steps for the proof:
Using the fact that $D < N_P(D)$ and $D < N_Q(D)$ (proper inclusion), prove that $N_G(D)$ cannot be a $2$-group.
Thus $D$ is normalized by an element $g \in G$ of order $7$. Prove that $P, gPg^{-1}, \ldots, g^6Pg^{-6}$ are distinct. Conclude that $D$ is contained in every Sylow $2$-subgroup.
Since the intersection of all Sylow $2$-subgroups is normal, $D$ is trivial.
By counting elements in Sylow $2$-subgroups, prove that $G$ contains exactly one Sylow $7$-subgroup.
This same argument works for proving the statement for groups of order $p^n q$.