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the tech demo and the PSP prequel were also indications for me that a PS3 remake of FFVII was possible, but there are a few problems.

SquareEnix take a lot of time to deliver FFXIII and the other HD RPG's. They want to give the best quality. With that kind of delay starting development on the remake will probably not make it till the mid of the other generation of consoles (after PS3). We're talking about visual art here, that takes a lot of time and more resources.

And Square Enix, like any company, wants to get profit and money. The wii can be their chance.