Yeah, FFVII is being milked because it will SELL, bottom line. It's (to me, sadly) their most popular game of their most popular series. It not only made logical sense, but also financial sense, which is a big key.
Personally, I think FFVII had horrid character development and a shotty story with a battle system that was pretty much the same old thing. In essence, too many lens flares, not enough substance.
But this didn't stop me from playing one of the greatest FFs to date, FFTactics, which came out a short while after VII (maybe after VIII too, but I don't think so...hard to remember exactly...). I also enjoyed FFVIII although the character development was sub-par and the battle system was a touch too easy. FFIX was great with awesome character development and a classic story and battle system.
So, although I've been dissapointed by Square at times (SaGa Frontier 1 & 2 are other examples of "let down" games), they still manage (at the very least every once in a while) to put out a truely great masterpiece. Perhaps the next will have the word we all wait to touch our ears again: Chrono.