Yes, because "Final Fantasy" has always been about re-using the same features and names from game to another. Making a FF7 reference to make it more appealing is a pretty cheap trick under the belt really.
Not that I particularly mind "materia" system (although aetherite/aethecite/aethe-something would work much better for the game's lore) but this "Final Fantasy feel" crap is going way overboard.
The developers need to be careful to not lose the FFXIV feel as they move forward. Pulling random names and systems from previous FF's does not necessarily mean it fits this game. Just like calling a gambler of Ul'dah suddenly "Monk" or the Colosseum gladiator a "Paladin" simply does not compute.
I am glad I'm arguing about the name of the system and not the system itself, though. It sounds exactly what crafting needs, my fears have been lifted on that front.