Backgrounds are great. The lego people field models are what I assume most people complain about? (Battle models are excellent).

The lego people definitely aren't fantastic, but they're simple and clean and surprisingly expressive. They animate well, which gives them a lot more expressive capability than the sprites in VI, for example.

That being said, FFVII definitely looks the worst of the PSX era FFs. But they're all gorgeous, so that's hardly a terrible thing.