I don't know. I'm actually impressed with the character models (as of 2011) for Versus. I also like that Nomura can do more than just zippers and leather.
There is nothing special or cool about the (now generic) Japanese characters spawned from Final Fantasy VII.
I gotta agree with leatherhat, the characters look like they belong in a yakuza game as random suit guy you beat up on the street 1-4. They aren't bad but they aren't good either. I kinda get points about the FF7 and other characters not being that great and I agree with some of them too but atleast they were unique and you could never mix them up with anything. Where these characters no matter how much they push the graphics the design is going to be meh.