Well I read that the reason they called it "cloning" in the english version is because there is no equivalent to what they were trying to call it in Japanese.
Also, I believe Seph was creating an artificial supernova, to demonstrate all the massive knowledge he gained while in the lifestream, represented by the nonsensical mathematical equations on the screen during the sequence. That, and, they just wanted to make an awesome battle animation for the final boss.
Also, FFVII isn't the only game in the series to make an allusion to Earth. In Final Fantasy IV the game makes a direct reference to planets in our solar system (Mars and Jupiter I think) to explain the location of the Lunarian planet when it first came into the solar system. The game takes place on "The Blue Planet" and in the ending (at least in the GBA planet) it shows it as the third one from the sun.
Kage was 100% right - in the promotional interviews of the creators of Final Fantasy VII, Yoshinori Kitase (the director) said that the entire goal of RPGs is to take something from the real world and use it as a model for the game. When making FFVII they really wanted to harness the technology to accomplish this goal.
The best example is probably Shinra Inc. At the time the game was produced, the mid-late 1990's, the key word in politics was "globalization", the international economy had just then returned to its peak levels of integration from the 1890's. In this field, one line of thinking states that eventually, due to international trading, nations will become obsolete, or at least irrelevant. The game took this and put it in, as for maybe the first time, the evil ones aren't Empires, Kingdoms, or even Nations - they're capitalists in business suits.
Another example of this is the opening mission, Cloud running through a reactor tearing apart armed gunmen with his sword. Alot of people said "yeah, that makes sense" sarcastically, but there is a real life example of when 2 samurai's broke into a British arms-producing plant in the 1600s (i think around then) and the bullets weren't able to penetrate their armor. They blew the place up, too, I think.





), it wouldn't create a supernova, because it's simply too small and too cold. 
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