In Woolsey's case, it wasn't because he didn't know what he was doing, or was unsuited to the job, or anything like that. On the contrary, he did the best he could given the limitations he had to work through. Size limitations and perhaps more significantly a fixed-width font would have made a more accurate translation impossible, so instead he focused on conveying the story and tone as accurately as could fit, even if it meant that the actual words weren't quite spot on.
Games from FF7 on had the advantage of being more localization-friendly, what with being stored on a disc and having a completely different text-rendering system. VII squandered this with a shoddy translation, but in this case I'm not so sure it was a matter of budget as it was incompetence.
And before someone inevitably brings up the "spoony bard" line, I should point out that Ted Woolsey had nothing to do with FFIV.