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Graphics do not need to be 3D to be good. That is a misconception created by the video game industry.

As for the movie, it is only being made because the movie and video game industry recognizes the large fanbase that Final Fantasy VII has had for the past eight years. They seek to create a movie that will get the fans to buy tickets so they will make money. The idea here is not to make a cinematic work of art, but rather a film that will exploit a large fanbase and thus maximize profits. Have you ever noticed the large quantity of films made in the past 15 years based on something popular or trendy? These movies are made by focus groups who determine what course of action will yield the greatest amount of money.