Yeah nostalgia tends to cloud (no pun intended) ones judgment.
I was 14 when I first played it, but now I just laugh at the dialogue. Though again there are a few select parts that I genuinely thought were and still are good.

Anyways, another reason why I don't think a remake will be made is because of how popular it is, SE doesn't need to re-release this game in order for more people to buy into the series, whether it just be the FF7 angle or the FF series as a whole, but that's just my take on it.