I enjoy the current materia system for what it is and does in the MMO setting. Fixed a lot of issues. Made crafting have more of a point.

I think you're asking for serious exploits and balance issues if you make the system more like VII's. Put yourself in the dev's shoes when trying to implement a system like that that's truly fair and balanced.

Not that I hate VII's materia system. It's really enjoyable. But it's not necessarily the best way to go for an MMO.

It may have even been a mistake to name it Materia. Much like it was a mistake to put "Final Fantasy" in the name "Final Fantasy: Spirits Within". All it did was disappoint fans.

It does but ultimately an MMO is about battle classes.
Maybe in PSO, Borderlands, or Guild Wars.

I dunno about you, but I like the idea that every other piece of equipment you come across was player-made with time and effort put into them, and not just some drop from some mob that some DRK happened to kill repeatedly.