The question has been asked, "Why do a remake? If you like the game, just play the original!"
But I understand the desire for a remake. It's a way to bring something fresh and new to a game you've essentially worn out through repeated exposure. I don't think they will do a remake, but I'll be happy to buy it if they do. Make of that what you will.
In my column last Friday a few people suggested that if they did do a remake of FFVII they should do it for one of the portable platforms. I love this idea. They could leave out the voice acting and dial back the motion capture, and at the same time go for a more stylized anime approach. This would be more true to the original as well as way cheaper. They could then "port" it back to the PS3 without people bitching about the lack of voice because, hey: It was originally designed for portables, right?
While I don't really think Square Enix would chase after Zynga, I do expect that some of the large and medium sized publishers will try something like this. The revelation that FarmVille had a larger userbase than World of Warcraft has certainly raised a few eyebrows. We were flooded with WoW clones over the past few years, and I expect we'll see similar lemming-like behavior in Zynga's wake.