Yeah he's pretty retarded. Remaking FF VII shouldn't be any more difficult in practice than making a new game (because uh, they still do those, right?). Difference is, they already have the source material for it. They already have the framework for the characters, music, visual style, the plot, and the gameplay (and they have, since 1997!). There is some work that will take time, as in, putting it all together, reworking the gameplay, recomposing the music, the coding, etc, but the barebones is already there in concept.
Fuck, like it's already been stated, they can use the White Engine for the graphics! Nobody's gonna give a shit.