It was originally a cell phone game so I doubt anyone would have been surprised. u_u I guess they wanted to reach more people in Japan and I don't know how popular the iPhone (or even iPods and iPads) are there. :s Still would have been a better fit though. I keep saying that some version of that game would've been awesome on a phone (and much more forgiveable) but as an entry on the DS, it was just mediocre at best. Especially coming right after BBS (which I think may be the best game in the series for multiple reasons) and Days (a really good entry on the DS, all things considered).
Oh, and as for a VII remake... apparently we won't get it 'cause it would take too long to make. :( I can look up the article when I'm not about to head to bed sometime but someone interviews the head of Square-Enix and he said that while everyone wants to remake VII, it would just take waaay too many resources and waaay too much time to do it on PS3. 8(