The Final Fantasy III and IV DS remakes were developed by Matrix Software (the dev team that made Alundra on the PS1), while they seem to be seeking outside help with the Dragon Quest DS remakes as well (ArtePiazza is the dev team working on those). That's certainly understandable though, as they probably want their main teams working on their new flagship titles (FFXIII/Versus, the portable Kingdom Hearts, among others).
Anyways, I think Square-Enix started going downhill when they realized they could try to cash in by making spin-off after spin-off of their popular games. Did we really need so many spin-offs of the games that were in the past? You would think they would've learned not to make another movie after The Spirits Within bombed, even though they tried to milk the FFVII name for the second big release (it was a mediocre movie, too).
They should be concentrating on creating new IPs, as well as releasing games to bring back older "franchises." Yes, I know they tried their hand at releasing another Brave Fencer game, which was average or so, but they could concentrate on one for maybe the Wii or something (the PS1 Brave Fencer was quite the awesome game). Although they may have lost a lot of big names within their company, they aren't doing too bad.
