But the game is dated. Its nothing special. Even the story isnt that amazing. There is little depth to the game. The reason most people even LOVE FF7 is because its the game that got the them into RPGs. Play an RPG like Xenosaga; you'll get far more story; the essence of rpgs.
Releasing it with better graphics alone would just exposed how little there is to the game. You would want more then a simple plot and cut & dry bad guys. The new graphics will make you think its a new game but the gameplay is straight our of the 90s. So just new graphics would suck. Now adding stuff could possibly ruin the game; so it is a risk. And of course even if they do make a remake; there will always be people who say the old versions was better and more original.
Odds are someday they will release it, when they run of new ideas.
The game isnt magical. Honestly play it again. Its good because you remember how awsome it was when it came out or the first time you played it.