Because I am lazy and can't be bothered to read over all the previous posts (most of them seem to say the same thing anyway), I may be saying something previously stated; if so, apologies.
My question is: what is it about FFVII that's so badly in NEED of a remake in the first place?
If, as so many fans incessantly bray, it truly is the "BEST GAME EVARRRR," then I don't see how a remake could improve upon it (apart from updated graphics, of course--and Shamus here has made clear the expense and tedium of such an endeavor). But even if they could, the game still stands up pretty well on its own. I popped it in a few weeks ago and ran around Wutai, trying to get my materia back, then went up and totally owned Don Corneo. Still pretty fun. Where's the sense in remaking all that?
People have talked about how a remake would make scads of money. Sure, but the next entry in the Final Fantasy series almost certainly will as well. Though I don't pretend to understand videogame market forces very well, it seems clear enough that the Final Fantasy series has a strong enough following that Square's going to be able to sell the games, unless there starts to be a true declining trend of game quality. And that seems unlikely.
Really, Square's money and time is better invested in creating a NEW story, not rehashing what's already been done. You can still play the original FFVII with relative ease, and it's still a solid game (I think, anyway). I'd rather see Square develop more compelling storylines in the future, rather than just telling the same story.