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Bring Sakaguchi back, you say? TC, here I'm just curious: Takahashi, Kato, Ishii, Matsuno - do you even know those names? However, as many as there are good devs out of Square by now, threre are just as many still witith, and that doesn't seem to help at all. So, I believe, Square at this point is way beyond salvation. Well, if somehow quality games with substance and personality become fashionable once again, then who knows...
Do we really want or need a full remake? I think what might be best for these is a "semi-remake". Some old-school JRPG mechanics just aren't fun anymore, like random battles and world maps (yes, some people will light me up for bashing world maps, but to me they make the world seem small, empty and lifeless). I prefer to be able to at least see the enemies waltzing around (aka Star Ocean or FFXIII) or going full-on real-time (FFXII). The battle system itself could be slightly reworked to take in the best elements of the old school ATB system and the mechanics from FFX, FFXII and FFXIII (somehow I think this might come out looking a lot like Valkyria Chronicles. In other words, spectacular).
Otherwise, have the modelers look at each sprite and area and create a "nearly" exact 3D translation, do basically the same with the audio (better yet, give us the option of using the original or new soundtrack) and keep all story, content, etc. relatively unchanged. Of course, no matter what happens, we are most likely going to have to choke down all the retconned crap in the FFVII Compilation. Genesis isn't so bad, but pretty much everything else it added or changed is garbage.