It's a pretty underated moment. I found it interesting when I first played it, and still enjoy doing it. I still kind of wish that Sephiroth wasn't AI, but I guess that's to put you more in Cloud's position - you just stand there mesmerized as Sephiroth handles everything. I don't see the problem with knowing what's going to happen.

It's obviously better the first time though, as is finding out what you fear may be the truth (in North Crater), and then the actual truth in Mideel.