I was thinking that for this remake project, we may have the option of replacing some of the in-game cutscenes with more modern clips.
I think it would be possible if we replaced the opening cutscene of the game with the 2006 PS3 technical demo, although the seamless transition between FMV to gameplay may be compromised, if anyone remembers how the original train scene works compared with the demo.
Its not impossible to recreate the other cutscenes using modern tools. We can take into consideration the brilliant works of Monty Oum, who created the Dead Fantasy series (look up youtube for them) as an example of how we can make great cutscenes using the right tools.
As the cutscenes are far and few between, not much work is needed, unless we're trying to make a full-length 3D advent childrenish movie of FF7. XD
One particular cutscene I thought would look better is the scene where Cloud falls from the tower down to the flower patch. It is in fact an FMV, but the characters are still in their chibi forms. That could change...
Who knows; maybe by making new cutscenes with the appropriate format, there is a chance that the bugs associated with FMV playback on the PC version of FF7 may be resolved.