Yep those were my thoughts exactly. The total amount of padding could probably be swapped out for the rest of the first continent. Even though some of the padding I enjoyed, I still would've happily switched it out for more story content.

But there is a very specific reason they chose to end at Midgar. It's not just that it seemed a convenient place to end. You'll realize once you've finished why they chose to do that.

The upside is that it probably means there'll be a bit less in the next game.