Depends on who you ask, I think the full CGI cutscenes in CC were meh. I preferred the more cartoonish KH designs seen in the rest of the game over the realistic AC ones. To each their own I guess.

I agree that I feel the move to realism would be bad, but that's more of personal preference. Still, I feel a VII remake is inevitable, but I'm one of those guys who feels most of the series will get a remake eventually. I would prefer for a VII remake to keep the feel of the original and by that, stay with Nomura's anime style character designs and keep the world design decidedly more steampunk as opposed to the Compilation throwing in stuff that looks like it came out of VIII and XIII. I prefer the look of a world that has advanced in technology too soon rather than everything is high tech but grungy looking.