Yeah, it's funny that we all thought SquareEnix was actually going for a straight-forward title explaining what it was, only to find out it's just more Kingdom Hearts title tomfoolery. Probably should've named it "Re:MAKE" or something like that. :p
From what I hear about The Watchers of Fate, I wonder if this whole thing is going to end up as one of those "don't tamper with fate" stories we often get with time-travel, where Aerith dies just because she's supposed to and Cloud and company don't want to mess with the timeline. For me, these stories end up feeling passive and wimpym and I'd much rather have something like Final Fantasy X, where the characters actively fight against fate, and the sacrifices happen organically to the story (Tidus "dies" instead of Yuna). But who can tell where it's going to go with Nomura in charge? This is the same guy who undid Roxas' fate for a reunion with Xion and Axel.
None of this is a deal-breaker for me, although I understand the disappointment of certain fans (anything called "Final Fantasy VII" is going to have MASSIVE expectations). But if they're going to go this route, I want them to go as gonzo as possible; all bets off. I want the deaths to be switched around, Sephiroth to become a good guy, massive time-travel shenanigans, and for everything to end with a crossover with "Ahh! Real Monsters" and "Jackie Chan Adventures" where the characters fight machine gun toting dinosaurs. Or something like that.