I think what he means is that for the budget and time it would require to do a FFVII remake, they could better spend their resources on doing something better, like a new game. Especially since a FFVII remake will probably not sell as well today as people think, but fans are so caught up in their own bubble they don't realize that.
If FFVII came out today, it'd probably get dismal reviews. I don't think the gameplay has aged well, but if they change too much of it the hardcore fans will get all pissy. Besides, the story is already told, no reason to see it again.