For more detail on what I was explaining earlier, now that I'm not posting from my mobile, here we go:
IF you intend to re-translate FFVII, and release a clearer version of the original Japanese text to correct mistakes made by the original translation team for download for those who posses a copy of the original FFVII for PC, there's a good chance it will be largely ignored by SE. This is because it's not violating copyright, Intellectual Property rights, because it's only an attempt to more clearly/correctly portray the original material that wasn't properly done by the original localization/translation team.
IF you want to release a version of FFVII with "Skoll" a character of your own creation, who replaces not just a character model, but modifies the content of the story, that means that you're modifying the IP that SquareEnix owns, and violating their copyright, and they'll issue you a C&D, because they're well within their rights to do so.
At the end of the day, however you feel about FFVII or the Compilation doesn't matter. SquareEnix and the developers and whoever they pass the copyrights to are the ones who own the world and its material, and they're free to modify, and elaborate on it however they choose. No one aside from the people who created FFVII can say that they did or didn't have other ideas for events in the world of FFVII at the time it was made.
As has been stated, and I'll pull the quote from the game.
Cait Sith said:
I can protect the Planet too! I'm kinda embarrassed... There's plenty of stuffed toys like my body around, but there's only one me! Don't forget me even if another Cait Sith comes along. Good bye, then! I guess I'm off to save the Planet..."
Especially coming from somewhere like Gold Saucer, the giant Mog, and Cait Sith aren't uncommon objects in the universe of FFVII. While his bumbly attitude is somewhat juxtaposed with the general demeanor of the rest of the party, it doesn't implicitly make him a bad character, but it can make him generally more disliked, because he's different. That compounded with the fact that his limit breaks are unpredictable means that he's generally ignored / pushed off to the side. If Cait Sith had more reliable Limit Breaks, I'd be more inclined to use him in battle. Hell, if he had his own version of Yuffie's Limit break set, I wouldn't
not use him.
Lastly, I still do wish that there was a real giant Mog, and that FFVII had an isolated Mog/Moogle population on some distant island, or in a cave/forest, or something (even if Cait Sith was still an animated puppet being controlled by Reeve riding around on him and spying on the party). While that's a fairly minor change that I could come up with a way to seamlessly integrate that idea into FFVII, if I did, despite the fact that it would leave his character totally intact, it wouldn't be Final Fantasy VII any more than any other fanfiction.
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