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I think it was FF8 and FF9 that started development at around the same time. Nomura/Nojima on FF8 and Sakaguchi and his team in Hawaii on FF9 while he was working on the Spirits Within. Sakaguchi was dissapointed with the direction that Final Fantasy was going towards with a more futuristic, realistic sci-fi theme so he made FF9 chibi and medieval as a response.
in a way this makes me feel FF1 events have more "weight" to them since the power and capabilities you are talking about surpass everything else in the more shiny FF7 or FF9 stuff.