At the recent Sony Press Conference they revealed a video of FFVII's opening sequence with the graphics that the game would have had if it were made for the PS3 (or when it's made...maybe? please?). Alls I can say is that it's pretty awesome looking, Cloud and Aeris look just like they will in Advent Children, and this would be GAMEPLAY graphics. Squeenix insists there's not going to be a FFVII remake for PS3.
Time will tell, I mean hey, they already started on it with this practically (wishful thinking) why stop?
Check the trailer streaming here, they also have an option to download it at the bottom on the streaming page if you're unfamiliar with the site.