Final Fantasy VII did alot of things well, in spite of its detractors... the plot was excellent (if a movie has a confusing plot it's "ambiguous", if a game does it's "confusing"), it was the first RPG to make pervasive use of FMV, orchestral scoring, 3D graphics, etc., and the artistic design of the game tended to be affecting. Not to mention that the gameplay was, in the Final Fantasy tradition, commendable.
In my opinion, alot of the critical backlash against FFVII has to do with the nature of game criticism, which is still fixated on the "mechanics" of a game more than the extent to which it's emotionally affecting. This is a throwback to when video games were perceived as "toys", and is still obvious in the way that a site like IGN ranks games on the categorical basis of how their various attributes stack up.