No... I replied to you... the things you mentioned weren't character development. They were flashbacks.
Character Development happens DURING the story. Not before it.
The only character who you proved had any character development during the actual story was Caith Sith... who I said already had character development... but is annoying, and a completly useless character since he is unimportant in the terms of the overriding story and you don't need to use everybody.
He's pure filler. Which is another problem... most of these characters are filler.
Yuffie, Cait Sith and Red XIII were completely unneeded and really did little to advance the overarching story.
FF7 would of played out the same way if you were only Cloud, Barret, Aerith and Tifa.
Those other characters may as well be ignored or simply left out of the game since you don't need to use them for anything... and all the characters being basically the same give them no point in gameplay.
