1. Yes
2. PS3
3. Because the original tech demo for a FFVII remake was made for the ps3 (and the trailer that came with CC:FFVII for the PSP was even more detailed than the tech demo), and it seems like most fans simply want a graphics upgrade (a hefty graphics upgrade, judging by the drooling of fans over the tech demo), rather than a controls upgrade, which would fit perfectly on the ps3. Plus, FFXIII/FFVXIII + FFVII would convince just about every FF fan out there to get a ps3, garnering more sales for all three, imo.
It could go multiplat ps3/360, but it would sell 8+ mil. regardless of platform, so it's by no means necessary or guaranteed.
Hell, even I'd buy it, and I've never played a FF (I just bought FFX, but haven't started it yet).
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