Even if you think most videogames have mediocre or straight-up bad stories/writing and even the most acclaimed ones are, on average, considerably worse than what you'd find among the greatest films (I most definitely do), why woudn't you care about that?
It's a big an element as any other considering most AAA games nowadays are narrative-driven and place great emphasis on that, regardless of the ultimate quality.
Like, you can find tons of fun stories and characters in games all the same, even if they don't reach the levels of the most acclaimed films (and videogames have the characteristic of being more interactive and longer than films, so chances are you're going to have a bigger connection to them even when the plot is only serviceable).
And of course FF VII Remake's story will be judged when the
whole game is moved through it and it's
constantly in your face what with visual storytelling, real-time dialogue and, of course, the hours upon hours of cutscenes. It's a part of the game as big as its combat or its exploration, so it's only fair that you can be dissapointed by it. Especially since the original frame of reference (OG FF VII) has a story that, while still not amazing or exemplary, is really beloved and has tons of very interesting ideas, events and characters.
By that rule, you couldn't possibly complain about the stories in most superhero movies, shonen manga or whatever. To enjoy a story you don't have to receive only the most exquisite, groundbreaking stuff.
so: it's a game about itself? well, while your & others might find this excercise fascinating, there are, on the other hand, those of us who find it to be, as the op mentions, basically nothing more than 'indulgent, masturbatory nonsense'. & i'm not sure either view really has any more validity than the other - it's purely subjective...
While I generally agree about the fact that this reeks to "look at how cute we are" (even though this is a trope that we can find in other media, so it's not new or unique), my biggest gripe is the concept of fate itself, the incredibly sloppy execution and the potential ramifications.
I really don't need this to become a series filled to the brim with fanservice to make people happy about characters they want to be alive. I don't need a reunion, or characters that are way more important and prevalent that they need to be.
The biggest thing, though? I'd be way more at ease with these potential changes if the whole ghost plot hadn't polluted the entire game. You don't need them to pull metacommentary on how you're going to change things, it's wholly unneeded. In fact, I'd argue it'd be more shocking (if that's the intent) to have the big diversions post-Midgar be totally unexpected.
Of course, though, there's the big chance that they just want to give people hope and they will pull the trigger on certain events anyways, just differently. Which doesn't make this all much better, it'd just be unnecessarily convoluted and annoying as the pacing and general tone of the first game would already be tainted by the Fates.
It all comes down to restraint, really. I think FF VII Remake is a wonderful game, but it severely lacks it when it matters the most. Still, I'll be ecstatic when they first show the next game. And I can't deny I'm very curious to see what they'll do, so I guess they won in that regard even with me.