Ever since they released the PS3 tech demo, people have been convinced that they're remaking FFVII. Square said that they
weren't, but that was then. Now, they've released Advent Children (twice), Before Crisis, Crisis Core and Dirge of Cerberus. Every main character now has a suitable HD model from being in AC or any of the above games (Crisis Core has beautiful cutscenes containing characters not featuring in AC, and incidental characters could be made from the various townsfolk of Edge). They have renders of many original game locations from the modern generation of FFVII games to work from. I wouldn't be surprised at all if people were throwing their spare hours into secret FFVII work.
No one is seriously going to believe that Square wouldn't cash in on their biggest cow by releasing a PS3-remake of FFVII. I think it's likely, in fact, that they re-released FFVII on the PSN in order to offer an alternative to the extreme purists who hate the Compilation and don't want to see the classic 'tainted' in any way, shape or form. When/if they remake VII for the PS3, they will certainly tie in elements from the other installments of the Compilation.
Examples:
The members of AVALANCHE will likely talk about the old days of the organization, back when Elfe and Shears and Fuhito and them were around.
The Turks will likely reminisce about their old comrades (Cissnei, Rod, Etc.) when you see them in the Don Corneo sidemission in Wutai.
Yuffie and Vincent likely won't be optional characters anymore, meaning that you'll get all that wonderful storyline about Lucrecia, and that crazy Yuffie sidemission to get Leviathan will be less obscure-sounding.
The Nibelheim flashback will likely become officially part of the main storyline, rather than forcing you to backtrack to a location where there is nothing new for you to obtain (this would probably be tied into the Lucrecia stuff, since Lucrecia's Cave is near Nibelheim, and if Vincent is made an official cast member rather than optional, then the location of his final weapon and Limit Break will be made more explicit).
The fact that Red XIII is
not actually the last of his kind will likely be made a little more obvious (his mate was in a cave meditating or something of that sort during the events of VII). (As well as the fact that Bugenhagen is NOT his biological grandfather; oh my GOD, why is this so hard for people to grasp?!)
Characters featuring later in the series (Deepground SOLDIER, Shalua Rui, Denzel, etc.) may get incidental roles, or at least be mentioned in passing to tie everything together more neatly.
Not to mention that all those fun translation errors will be fixed ('This guy are sick!' 'Off course!' 'Beacause you are a puppet!'), spell names will be updated to fall in line with the current naming scheme (Bolt3 - Thundaga, Ice2 - Blizzara, etc.) and things that were initially translated in an interesting fashion will be corrected (Helletic Hojo - Heretic Hojo, Touph Ring - Tough Ring, etc.)
Corneille Noire
I just need to get this off of my chest and say Final Fantasy was the biggest disgrace to Final Fantasy ever!
lol @ not proof-reading. I'd respectfully disagree with what I assume is your intended statement, and argue that FFX-2 was a pretty big disgrace. Of all the Final Fantasies that didn't need a continuation, I'd say that X needed one the least. Everything was tied up so neatly at the end of X...