(also contains some images for Kingdom Hearts 2 and Kingdom Hearts GBA)
I didn't read the article on IGN, but there is a very good chance that this could be a DVD for the PS2 only, allowing interactive options as were planned for a PS2-only The Spirits Within DVD that was never made. It would include simple things like changing the camera angles and zooming in/out, and more.
Personally, I was always against a FF7 sequel. I felt that while X allowed for a continued storyline, 7 dusted its hands and walked off into the sunset. Everything was finished. And while you didn't know what happened with everyone, that's what made it so great. You could be thinking, "So what happened with Cloud and Tifa? Where'd Barret and Marlene settle? Did everyone die?" that's what made the game so great. Not everything was folded into a neat little package. You got closure, while still having questions that never really felt like they needed to be answered.
But now we're getting those answers. I'm not particularly happy about that, because it's an obvious case of appealing to fans vs maintaining artistic integrity. But to be honest, if they were gonna make a sequel for it, I'm glad it's a movie rather than a game.