They also get boring rather quickly, while FFVIII is pretty entertaining to play from start to finish. Also, FFVIII has Triple Triad. That little mini-game alone is seriously more fun than FF1.
Matthewtheman got it right. FFVIII > FF1-3.
Too limited? I'd say it's on about the same level as FFVII, and it completely overshadows FF1-6 in this aspect, with FF5 being the only exception. In FFVIII you could customize everything from stats to what commands your characters would have, plus bonuses such as Auto-Haste, Auto-Potion, Counter and the like. It's above average in the customization aspect if you ask me.
This is correct, however. It's the one thing about FFVIII that bugs me the most. FFVIII is the easiest FF by far, as soon as you figure out how to "break the system" (which is incredibly easy to do). If they ever do a remake, it better at least have the option to increase the difficulty level. When you can beat the last boss and the ultimate extra boss blindfolded, then the game is probably too easy.