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Also, I never said they affect the story directly, I said they were so bad that I never even made it up to the meat of the story on two seperate occasions because the graphics made me want to stop playing.
Look, you have to see it from my perspective. The first time I ever played the game was in 2009, I had never watched a let's play of it and had no idea what to expect. I went to play it and the graphics were what they were. I can happily go back and play Crash Bandicoot, MGS, Super Mario 64, Tekken 2, and a slew of other games that were released at that time. I'm not some graphics elitist, but bad graphics are bad graphics, and FF7 has, objectively, some of the worst I've ever seen in a game.
Honestly, this sounds less to me that the graphics are objectively bad as you're saying they're bad compared to 2009 and your expectations of games from the era. The graphics did the job, which was tell the story and be readable onscreen. Which they were. Even the character models which are by far the worst part of the game. If you really want to compare it to something more contemporary you should go with Resident Evil. Same pre-rendered backgrounds. Same use of 3D sprites on top of said backgrounds. I'd still say RE probably looks worse because those backgrounds are terrible but it's not so great all around. I could probably sit here all day listing more games of the day that look as bad, or worse, than FFVII but I won't because I'd be here forever.