Yes, I've lost all confidence. With the exception of Deus Ex: Human Revolution, which is a Square Enix game only by a technicality, they haven't released anything exciting since The World Ends with You. FFXIII was an entirely vapid experience (though I do like the soundtrack) and FFXIII-2 actually looks worse. At this point I want to see Square Enix do an FFVII remake, not because it would be awesome (since they would probably find a way to ruin it), but to prove that there are still people over there who are listening to their customers and can make half-decent business decisions because, right now, I have no idea what they're thinking.
I guess I should qualify this by mentioning that I never got into the Dragon Quest and Star Ocean games (pretty much the Enix side of things) so I can't speak to their quality.
Not sure that they have the skill or tools to even make a FF7 remake anymore, the project with the engine that they have been using since ff10 would be too much for them.
Even though a few years ago they did tease us with the FF7 tech demo :P