Because a game that looks realistic has to mimic properly every aspect of the real world? It's not the real world.
It has to follow the logic of its own world. Is FF7's logic that whenever you encounter an enemy you're brought into a 3D space where you take turns in a fight till death? That's obviously not the case as proven by other media from the Compilation. Most fiction follows real world logic and adds some differences (0-10%), which is the same with FF7. So yeah it's the same real world with
some differences. You can't disregard all real world logic only because FF7 world is not real world.
I play games for escapism as much as anything, and being realistic doesn't necessarily make a game better. Mario wouldn't be anywhere near as fun if he could only jump as high as people can in real life, and even if they make a Mario game with photorealistic graphics, he's still going to be able to jump several times his own height.
Your provided example does not break any logic of the world Mario is in. Did I ever say AC is bad because Cid, Tifa and Turks display inhuman feats? No. That shit is possible in FF7 world. I don't remember them taking turns in AC, though. You know why? Because that's not how FF7 world works. That's only how OG works, in other words, it's purely a gameplay thing and does not portray how battles actually happened in the story.
That doesn't make the games bad, and if that breaks suspension of belief for you then it sounds like the problem is with you rather than with the game.
Oh, sorry, my bad. FF7 and Mario are real.
Especially since you're saying the original game's graphics broke your suspension of disbelief. I don't think most other people who played it had that problem.
OK, I guess that makes my points invalid?
Don't get me wrong. It's not about the Remake's super photorealistic graphics. FFX (one of the few other FF games I played) had PS2 graphics and its battle system sucked ass because it was turn-based and still had random encounters. How can the game appear real, be set in a 3D space, and be so damn illogical? Because it's made for people who enjoy such battle system enough to disregard its lack of logic. And I'm all about logic.
OG's battle system is only fine because it has comparably shitty graphics. If it's lego, I don't have to take the environment too seriously and that allows me to enjoy the illogical battle without thinking too much about it.
FINALLY, LET ME PUT IT THIS WAY:
Non-real-time battle system fails to portray the battles the way they
actually may have happened within the story, instead it portrays them the way they definitely didn't happen. You can enjoy the system as much as you want but this fact is unquestionable. Good for you if you don't care