I remembered reading about this in some magazines or articles that the creator of Final Fantasy actually wants to make CG movies. In fact, that is one of his dreams
It's not bad to try out making CG movies. Squaresoft started it with the intro of Final Fantasy the Movie. Although it is not really widely accepted, but it is a first move and Squaresoft can find out the pros and cons of it. I just saw the CG movie of Animatrix, which I think it is pretty cool.
But with this FF VII movie, I am not really convinced