It depends on one's perspective. At the time, FFVII was considered amazing and probably revolutionary due to its innovations in story and gameplay. But a lot of the things it introduces are retroactively old hat and cliche to some. Such as "brooding" (even though in the original FFVII, he doesn't brood all that much) spiky headed heroes, a story that is mindscrew and a bit difficult to understand, characters leaving the party permanently, etc. These are things that a lot of RPGs in the years that followed emulated due to its success.
For me, I played the game long after its first release. (In 2005ish) So it doesn't quite have the same appeal of nostalgia that it may have to others. It's a good game, for sure, with a story that still holds up tremendously by today's standards. But the translation is quite frankly atrocious (and hilarious depending on your view), which can be either a negative or a positive. And I don't find the gameplay to be anything too special, to be honest. Although it can be fun to put materia into your weapon and accessory slots, it's still basically your typical bread-and-butter turn-based RPG.
Personally, I prefer later Final Fantasies which take more risks to innovate, like Final Fantasy VIII directly afterwards with its very unique system, X, and XIII. But it is a classic that every RPG fan should be familiar with and play, if only to get their own opinion on it.
Basically: I think it's good, but not the best and that a good chunk of the hype is based on the circumstances around which it was released for its time/nostalgia and doesn't necessarily say much about its actual quality. But again, it's based sheerly on opinion. If anyone wants to find out anything, they should experience it for themselves.