It had to do with technical limitations. They didn't know how to program four characters onto the screen without chugging the loading times. It's one of the reasons why IX's battles take forever to load compared to VII and VIIIs. I think after that, it was just a matter of gameplay mechanics and new traditions making a four man team on console kind of obsolete.
Frankly I would only flesh out the story and characters of FFII and focus on world building in FFI and III. Having finished both the original and DS versions of FFIII, I can honestly say the DS version feels like a downgrade and the shoe-horning characterization really didn't do the plot any favors as much as I feel expanding the games lore would have helped. If you want character driven narrative for FFI and III, you would have to rewrite their whole stories to make it work.
I'm not sure I would really want to see remakes of the first three entries that brought them into the mold of more modern entries. Dissidia already tried to retcon the hell out of FFI's plot and it's a convulated mess that does little to really add to the story and more to show that no one at SE knows how to write a decent plot anymore.





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