Materia makes more sense than Magicite would, as Magicite is linked to two things in FF, in terms of major releases:

1. FFVI's Espers, which gave some stat gains but..it's main use was for summons.

2. FFXI was material created inside of the cermet spines and basically held memories of the beastmen past.

Materia, or even Evolith fits more, but it's not really trying to appeal to ffvii fans..it's a tenative name and it fits what purpose it seems to have, much like them calling moogles in xiv moogles is because that's what they are :P