:3 Let's see how this goes.
I, personally, believe it was NOT a mistranslation. This is mostly due to my hearing the name "Aeris" prior to knowing of Final Fantasy 7, but never have I ever heard of someone with the name Aerith. However, this is about translation, not silly stuff like that.
To my understanding, there is no thick "th" sound in the Japanese language. There is, however, a very "S" type sound, which can be translated as a "th" sound as well. Though, I'm no expert at Japanese, so don't quote me on this. But one thing I've noticed when watching trailers of both the US and JP versions of the game Phantasy Star Universe, the name "Ethan" is pretty much changed to "Esan" when introduced to the Japanese voice actor's vocal chords, since in the Japanese language, there is no hard "th" sound to represent his name well enough, the closest thing being the "S" sound.
So that's my thinking on this. :3 What about you?