Apparently, it was used as a tech demo, or so people in that thread have said. It's true that a complete FF7 remake would be neat, but I guess it was just a way of showing off the hardware.
In my opinion, that's ok - FF7 was great as it was. Why tamper with the winning formula?
According to gamespot (who were actually present during the tech demo) there's no remake planned for the PS3, it was just a hardware demonstration, as has been stated.
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