I really don't think the term "RPG" should even be used anymore, unless you're talking about a game like Fable or Oblivion I suppose. Games like Final Fantasy VII and Xenogears are no more "Role-Playing Games" than Bayonetta or Resident Evil.

I remember when I first saw Fallout 3 and Mass Effect and they were labeled as "RPG" I thought "What? These aren't at all RPGs!" but now that I think about it those are actually more RPGs than FF games (save XI) are.