No, I don't really think it needs it.
I love FF VIII to pieces (my second favourite game ever!) and I genuinely believe it's still perfectly playable to this day. Heck, I still find the CGI cutscenes fantastic to watch.
Remakes of PS1 era games take a lot more effort than just up-ressing a PS2 era game, and for something like FF VIII I just don't think it's worth it.
VII gets a lot hype for being remade, and I can understand that better. I mean, the characters don't even have discernible hands. Cloud is mostly just some jagged purple with even more jagged blonde hair. Although, again, I still don't think it needs remaking, it's in a lot more need of it than VIII.
My final point is just that it's part of the charm. I mean, yeah, by today's standards it is incredibly jagged and everything, but I dunno. It's from that era and I'm happy to respect it as such. Plus, I'm not sure I trust the Square-Enix of today with remaking ANYTHING =/
I still get chills from watching this! Although a lot of that comes from Uematsu's genius score.