You are wrong. FF7 is the best game EVER.

No, just no. WRPGs are generic, even in this day with user created main characters that have no personality.WRPGs are better than current JRPGS, but none of them can come close to the classic JRPGs

If anything JRPGs are more generic ...

Androgynous characters ? Check. Emo characters ? Check. Gives you little amount of choices ? Check. Binary morals ? Check. Largely unevolved gameplay ? Check. Pandering to anime otaku's ? Check. Features lots of japanese culture ? Check. Bad writing ? Check. Linear ? Check. Stagnating ? Check. The list goes on and on ...

Mind you I'm not trolling as I've used to adore JRPGs 2 generations ago much like you did but let's face it, JRPGs last generation has being straight up trash for the most part and not even Demon Souls or Xenoblade Chronicles could save that genre which is saying a lot. 

There are many WRPGs that can compete with classic JRPGs. The only notable JRPG series that held high quality before 7th gen began were Final Fantasy (Obviously ...), Pokemon (Again really obvious ...), Kingdom Hearts, and Dragon Quest but let me just tell you something, quality in this case is defined by sales rather than critical acclaim for reasons such as being a more reliable while also being the more objective measurement of quality so JRPGs such as SMT, Dark Cloud, Star Ocean, Chrono series, Tales of series, Xeno series, and Fire Emblem are all irrelevant in the eyes of a consumer. 

Out of the rest of the four only Pokemon maintained it's quality throughout it's entire franchise. Final Fantasy is fighting for it's life to stay relevant and the other two were left to rot in complete obscurity. Despite the fact that I don't like Skyrim or the original Pokemon they are both similar in quality looking at the revenues generated so the biggest WRPG can compete with the most iconic JRPG. As for FF VII, I think both Dragon Age Origins and Fallout 3 have comparable quality to FF VII or even surpass it. 

I don't understand why current WRPGs have to be within a classic JRPGs shadow since they can obviously shine on their own.

Even Lufia II: Rise of the Sinistrals was better than FFVII.

There are no WRPGs with the writing on the level of the best JRPGs. Yes WRPG is more open and none linear, but that does not equal quality. WRPGs just give you tons of options with no memorable story. I loved Dragon Age origins and Skyrim, but they lacked an engaging story the way Dragon Quest 8, Dark loud 2 and FF7 had. There were no memorable characters either, which is what make RPGs great to begin with. The battle system in Skyrim was just hack n slash, but DA had a good battle system. Everything else you named also give JRPgs an edge do to better design, art direction and more interesting archetypes.WRPGs have those dull, generic, boring and personality less characters that do not separate them form the FPS games.

FFVII is one of the best ever.Not the best ever though.

If anything the writing in JRPGs are usually bad. The characters have poorly fleshed out thoughts and there is no depth to the actual story itself. Linear also doesn't mean that it's quality either. Memorable story is subjective and I thought that Fallout 3 had just as big of an impact emotionally compared to FF VII. Having choices means that I can mold whatever character I wish and that's a good thing. Dragon Quest and Dark Cloud also didn't have very engaging stories either due to the fact that it was your stereotypical JRPG beat up the bad guy and save the world generic crap but WRPGs are also guilty of this too but their more in depth about it so I can forgive them. Memorable characters aren't what makes an RPG. An RPG is about being able to assume multiple roles in a game. Design and art direction is also very subjective too since nobody likes japanese culture anymore in their games so I'll take western fantasy over cliche japanese centric fantasy. 

Boring gameplay (JRPG) vs Boring characters (WRPG)

It's your call ... Personally speaking though I think WRPGs excel in both categories. 

It is one of the best but not the very best! that title goes to Suikoden 2

Xenogears is just as or even better than FFVII.

It's not even close to being the best FF in my book, 4, 6, 8, 9, and 12 are all better. Its even farther from being the best JRPG ever, there's plenty of better ones; FF 6, Chrono Trigger, XenoGears, SMT Digital Devil Saga 1+2, Xenoblade Chronicles, Persona 3+4, Dragon Quest 6, 8, and 9, the list goes on.