OK, so we all are pretty much agreeing that a remake by fans is what is needed.
Thing is, if fans did try to do a remake, I presume SE would shut it down. They shut down a few other projects that were just pixalated AU stories and such. That's the unfortunant bit of it.
I'd almost assume it'd be better to leave the world building up to a company like SE and us fans would do the marathon style gameplay just cause of our lack of resources....
Perhaps though, the best thought is getting the game updated so that it has better, graphics. Though maybe not the best just cause of fanresources versus SE's etc. Same with music, movies, and all that. We probably should set it up just like the original FF7 games, where the background could be art pieces, invisible walls, activators, etc. in their proper places to make the background affect player etc. That way we don't have to do entire game models 3d from scratch. Though we wouldn't be able to use something like Unreal Engine if we do this.
Would we have to come up with our own game engine?
Oh, and we should consider moddability and upgradability to it. Just so once we send out some sort of base version, we and others who get interested once playing, could fix bugs, add new content, do overhauls, etc.
Side question; would you use old rumors about FF7 and include them in the fanremake? Cheese weapons, aerith's revival, cave in ancient forest, letters to wife and daughter quest, etc. Also things from the earlier SE scripts, like Nanaki fighting his clones?