Well, I think that this article hits on some things that are true, but many times for the wrong reasons. I'll state firstly and admit, that yes, I am one of the people who sees FF7 as the major downfall of RPGs. But it's not because it brought more people into the RPG fray. I still think that's a good thing- on the surface. The game was far too easy compared to the prior titles, was way too linear, and even the story felt like it was lacking. It used the easiest thing to get more people to look at it: graphics. Eh, so I write off 1 game; if it means twice the people are buying RPGs, good. It can mean that I get more of the games I love.
However, that wasn't the case. A large majority of the new games that would follow were thrown to the new fanbase, ignoring us of the old. The few bones that were thrown back to us were always blasted in reviews for either not looking pretty, being too hard, or yes, in some cases, not being 'Final Fantasy'. This is where my jade, as well as some others', comes from. It did not become an 'expansion', it became a 'replacement' for the RPG category. Sure, they're still technically RPGs, but the old fanbase was basically paved over with the new. For some of us, Final Fantasy was gone forever. The only thing we've seen since 6 were the scattered references made in 9.
Do I look down on these new fans? Not for this alone. I realize that people have different entry points; my having Dragon Warrior (Quest) 1 as an entry point does not give me the right to look down on someone who may've entered at FF3US, or even FF7. When I will have a problem is when the newer gamer will blast the old games, frequently without having actually played them for more than 15 minutes, as being "ugly" or being "too hard". Sorry, but it was that challenge that many of us old RPG fans look for. Yes, we're a dying breed, but I'm going to cling to those few games we have left, like Persona 4 and Dark Spire, and treasure them. Because I don't know how much longer we'll have the chance to see games even like this anymore, given the lower sales...
On the other front that seems to have developed, the casual vs hardcore distinction, I'll give what I think on that:
Casual players typically like to be able to play for short periods of time. This is why they tend to like mini-game compilations- it lets them feel as though they actually acomplished something in a short amount of time. Thus, they will also tend to gravitate toward the games that don't require hours and hours of practice. When they choose to expand out, they will choose to scratch a surface. This scratch will be at whatever the "big game" in the genre is, such as Halo for FPS games. But this does not make Halo a casual game; rather, they'll try to sit down with it for 10 minutes or so, and really get nothing done. Perish the thought they go into multiplayer, I don't even think they'd stick around that long. They're not going to keep playing Halo for the hours required, nor are they likely to look for another FPS. They'll go back to what they're comfortable with.
Hardcore gamers, however, routinely play games for an extended period of time. They have no problem putting the time in to become good at Halo, partially because of also having existing skills that allow them to pick it up faster. These gamers have also successfully scratched many genre surfaces, finding at least 1 game in many areas that they like, though there will be at least 1 genre where they've taken the shovel, pickax, and many other excavation tools to find the gems of that genre that few know about. The hardcore will look for more than just a good time, they'll have that one other thing they want to get, whether it's 100% completion in an RPG bestiary, that coveted platinum trophy in Halo 3, or creating that LBP level that everyone seems to love. Casuals couldn't care less about these; they're here to keep the hardcore playing more. And play, they will.
So what about those who do play something simple for hours on end for a goal, like finishing a game of no-redraw solitaire? They may be a hardcore solitaire player, but that doesn't make them a hardcore gamer. If they've not scratched many other genre surfaces, they've a long way to go. Conversely, what about the hardcore fan who only has time to play for 15 minutes at a time? They still can be hardcore, as they're capable of seeing the larger picture. They know that it may not seem as though they got much done today, but they know that they are just that much closer to the end. They can revel in that fact, something that a casual player can not do, as they've seen no immeadiate satisfaction.