It looks like they're really throwing everything at this if Midgar is going to be its own 2 disc game. I think they're going to milk this thing to high heaven, like 4-5 parts until they finish it.
The combat looks good I suppose, I'm just a bit concerned about how it will evolve as you gain levels because it appears rather simplistic. I hope it opens up with more depth as you gain levels like in the original.
Overall it's looking good, actually better than I expected. The character designs look amazing (especially Aerith and Tifa,) the environments look really authentic and I can't wait to hear more of the music. The only minor annoyance for me is Sephiroth's English voice, he just sounds far too young and common. It should be deeper and more charismatic, I think they've messed up with this choice which is a shame because I like the other voices so far.