It's unbelievable how this game looks like everyone's wildest dreams. I couldn't picture a better way to remake this game.
I've been thinking about how they'll handle the episodic format, and I have a feeling they won't do it like most people seem to be expecting. The Allies were wondering whether people could grind to level 99 while waiting for episode 2, but here's my take:
The games, whether there's 2 or 3 in total, will actually be completely separate games, not episodes. More like Mass Effect 1, 2 and 3.
So when you play FF 7 - Episode 2, you won't carry over your characters from the first game. The characters will have a new starting point in terms of progression, the combat system will be tweaked from one game to the next, etc. That gives them more flexibility to make each new entry even more exciting but also keep them cleanly separate from each other.
As to how to handle the open-world, I think they might also limit where you can and can't go in each episode, again keeping the content unique to one title or the other. You won't re-enter Midgar in Episode 2.
It would be too risky business-wise to expect people to play through episode 1 before they can even play episode 2, and so on. Especially considering Episode 2 is extremely likely to be next-gen. It would be a logistical nightmare to manage an episodic game in the vein of Life Is Strange across multiple generations of consoles.
So I really believe next year's game will wrap up nicely after 30-40 hours and be its own game with a satisfying ending, and a cliffhanger. Then the sequel will come a year or two later and be its own game too, and so on.
Does that make any sense?