<looks back in>
Regarding lack of speed in Software Mode... I've played FF7 successfully on a P2 500 before. Yes, there was slowdown, but it was certainly *PLAYABLE* and enjoyable. Sometimes I get the feeling people expect a bit much these days...
In any case, faster the CPU, the faster Software Mode will run. It's that simple. You don't need a super fast CPU to get the most out of FF7.
And yes, stuff like bilinear filtering and the like is the reason why Hardware Mode will always look superior. Of course, with the graphics cards I've used in the past (TNT2, etc), that's always ended up putting nasty black borders around any texture used (everyone's eyes, Barret's tattoos, bridges on the overworld, etc.), so I'm not too impressed about its implementation in FF7.
As for the problems regarding the Temple of the Ancients I was talking about... it's just the same as usual; no frame limiter, so it ends up being hell to complete.