FFVII would be a nice surprise for every JRPG gamer but it was just a techdemo like Mummelmann said ...

But guys, C'mon, is a FFVII remake that important? What would it bring to the game? I can understand older FF's remakes, going from 2D to 3D is a big thing, but going from 3D to more polished 3D ... honestly no! I'd rather see them make a FFVIII sequel or working harder on fabula nova cristallis project!

because it was a rumor.
rumors die quite quickly.
look im gonna start 1 right now.
ea just bought bungie
pass it on

Maybe they found out that it isnt going to happen but we can only whish for it.

On the other hand, if you look at games, that SE publishing, there definitely will be FFVII someday. When, and on what system nobody knows, but will be.

i think that we have a better chance of it coming out on xbl or psn

This.

Because the only reason people were excited about it is because it was "supposed" to be a PS3 exclusive. And now it is clear that SE isnt interested in supporting the PS3 much. There are just no reasons for PS3 fans to keep this rumour and anticipation going. If it's not exclusive then it's not worth it for most of them.

I think it's because ppl came to the realization that it wasn't going to happen.

This.  They've been steadily re-releasing all the other old FF's so it's only a matter of time before they get to 7.