Square
officially said that the tech demo was only made to show off the PS3's graphical capabilities and not a hint that they were remaking FFVII, the owner of Square-Enix also said that they aren't any plans to ever remake FFVII on any console.
If you don't believe me browse IGN, 1Up, Gamespot, Gamefaqs and many other game sites, they all say exactly what I just said above.