Remaking FFVII would be a terrible idea, no matter how many people think they would make tons of money with it. A remade FFVII would never be the same, and this is not about the quality of the game itself, but about its cultural relevance. It was the game that popularized JRPGs in the West, and the first RPG of many people.
The same people that dream about a remake and cry louder about it would be the most disappointed by the remake. Not remaking FFVII is the best decision for Squeenix, no doubt about it.