Of course they're using a fan favorite and the name. That's the point; to make money.

They're giving fans what they want, though. FF fans, and more specifically in this case, FFVII fans, have been begging and howling for a sequel since the original came out. Square's using this opportunity to explore other genres in the FF name,

Oh, which reminds me, Square HAS done other games, ya know. Not just RPGs. So it's not like they're ignorant as to the workings of other genres.