Square would be better off creating a high production turn-based RPG rather than trying to change the genre into another but not as good. People still love old RPGs, and even the people wanting a FFVII remake aren't clamoring for an action-based battle system, so if they stayed with what they know, created a fun and interesting world with good characters, they would end up with a much more well received game. They don't need to make JRPGs something they aren't, they just need to make them enjoyable again.
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the dreamer of improbable dreams