it woudnt be final fantasy if there were wasnt a sword
Good point.

It is always important in a game that the plot itself be logically coherent and possible, but in a game like FFVII I wouldn't even try to analyse the world they live in. It just wouldn't make sense.
But people analyze the characters to the umpteenth degree. Why not their world?

Don't need satellites for mobile phones. Also, the rocket the party uses to get into space is the first machine to leave the planet, so naturally there wouldn't be any other artificial satellites orbiting the planet.
No, but satellites would sure help. And the rocket wasn't the first machine to leave the planet. It was the 26th one to do so.

YOU consider a gun progress over a sword, however the Japanese thought the complete opposite.
Natuarally the Japanese would think such, as that is part of their culture. I can see where, in the game, they're trying to get through the level of skill required in order to use a sword, and thus make those who do, better fighters, but it just seemed a little backward at first, since you could turn out really good soldiers faster.