Your point? That's how they managed to create the game in the first place, back in the day, it looked like dogshit (compared to modern standards).
Tools may be better now, but not so much that creating high quality assets has become a breeze, considering the fidelity people are expecting.
Creating an NPC with FF7 graphics and creating an NPC with today's standards, isn't exactly the same thing.
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Let's be real here, graphics like the ones we've seen in the gameplay demo, applied to every single unique locale seen in FF7, adjusted to include multiple view points (free camera, which mean more asset creation still) and probably a bit more freedom of movement (what before was a 2 roads crossing, will likely be something more now, because again, the gameplay isn't using fixed cameras, and it'd be weird to have such a level design).
You take all these elements into consideration, consider how much time (and money) big, AAA games like GTA or Witcher take to make (5+ years if you're fast and efficient) and then do a reality check.
People expecting them to recreate all of FF7, with those graphics, and in a timely manner, were being nothing short of delusional.
Whether you prefer this approach, or them releasing the game in, like, 7 years, that's another story, but it's obvious the investment would never have been worth it to SE in that case, so if this thing even exists, it has to be with all the qualifications of the case.
Take it or leave it.
FFXV for example was thought out as an open world since the very beginning (or rebirth, i should say) and, lo and behold, it uses a copy pasted map like any other open world game.
That's the reality of things, it takes a lot of time to create assets of this quality, for such a massive game, without resorting to copy paste design (like 99% of open worlds do).
FF7 doesn't have that luxury, because it has to adhere to an already told story, already set in place set pieces and scenarios.
Either you:
1) Get the game in a timely manner, in one go, but cut out a lot of stuff.
2) Get the game in a timely manner, in one go, complete, but cut production values significantly.
3) Get the game in a timely manner, in various episodes, complete and looking this good.
4) Get the game complete, in one go, and looking this good, but in 2020 if you're lucky (in which case you might as well wait for them to release all the episodes and buy the inevitable bundle).
What you
can't have, is have the game in a timely manner, one go, full FF7 content
with these production values.
SE may not be the best developer around, they may be slow, they may even be the worst idiots on the planet, whatever, doesn't change the fact that resources are limited for everyone, and something's gotta give.