Heh heh, they did. FF7 - Advent Children - on DVD now.
I know whatcha mean though, there are an awful lot of people that hate over-cinematic games, they always say "if I wanted to watch movies, I wouldn't be trying to play a game, dangit!".
Me, I know where they are comming from but sometimes I go for that kinda stuff. Like old LucasArts adventure games, some of those were very cut-scene heavy. You're right about the hype though, nothing says fanboys quite like FF.