I'm still skeptical on the prospect of it ever happening to be quite honest. If it comes out this generation on PS3 the entire game will need to be done to the level of Advent Children in order to appease most people it seems, and recreating the entire game alone with that amount of detail would be an amazingly daunting task. Throw in the voice acting people will want, redoing all the songs so they take advantage of current tech, general fine tuning of the gameplay and script, and you've got an expensive and time-consuming proposition. I honestly wonder if it would be a profitable game; yes millions will buy it, but would it offset the cost?

The one thing I could see working is making it either for the PSP or PSN and using the Crisis Core engine. I thought that looked quite fine and would work well for a remake.

In the end though, I don't see a point in speculating or expecting it to happen until Square says so.