Square Enix has a magic bag full of reasons why it can't remake Final Fantasy VII, usually failing to stick to the obvious one (it doesn't need remaking). Boss-lord Yoichi Wada has a new excuse today, claiming VII is yet to be improved upon, and can only be remade when a better Final Fantasy comes along.
"We'll make a Final Fantasy VII remake once we've made a Final Fantasy game that exceeds the quality of FFVII," he said, boldly defining VII as the best game in the series. The Final Fantasy VI fans are going to be sore about that one.
Wada went on to state that no Final Fantasy released in the years following VII has been as good, and as such, any remake released now would effectively end the entire franchise.
Whether you agree that VII is the best or not, one has to agree that it is the most iconic installment in the series. It is the game that defined the Japanese role-playing game for many people in the West, and as such, is going to be next-to-impossible to eclipse. That kind of lightning doesn't strike twice readily, so I'd say anybody desperate for that remake is going to be waiting a long damn time.
Though in truth, Square Enix is probably just waiting until it really needs some money.