You are. They said in an article that towns are too hard to do in HD, which is why FF7 will NEVER be remade for PS3. Also, they said in an article (as mentioned here) that it would take quite a while to make FF7 in the quality of 13, which is why FF7 will NEVER be remade for PS3. Not to mention the explicit statements that said the tech demo was just that; a tech demo. Nothing more, nothing less, no secret projects involved.
You're wrong, so let go of this misguided belief here. It'll save you a lot of time and energy.