@Golden Ear's first paragraph pretty much sums it up, and comparing the first section of a retro game with a modern AAA audiovisual extravaganza is problematic, but I'm going to ignore that and give my own thoughts anyway.
If I were to teach a class titled "Storytelling in Video Games", I'd focus an entire lecture on the Midgar portion of the original game. It'd be titled "Effective Pacing". I would not teach Remake. The original game knows exactly when to push the pedal to the metal, and when to pump the brakes. It says so much with so little, and that will always be more worthwhile to me than saying a lot with a lot. Now, pacing isn't everything, but I personally don't think the characterization in Remake falls that far ahead or behind the original game's either. At the end of the day the voice of each character shines through. They're engaging in both instances, and I'm not about to argue over the details (this isn't one of my theory posts).
As for the plot between the two, well, in my opinion Remake is the most interesting in respect to the original game. As in, you really can't analyze what Remake is trying to say without having memories of the original. It's a prerequisite, regardless of how much the creators say otherwise.
Truthfully, I could teach an entire class on FFVII. The whole game is immaculately paced, even the huge materia sidequest! (In short, it makes immediate use of the freedom given to the player by the Highwind. Same with searching for Cloud. That's good game design!)