Too bad they've already been trumped on the "next generation" front by the Dark Cloud series.
Frankly, Square needs to hire better writers. The first couple of PS1 Final Fantasies were front-loaded with graphics and "gameplay innovations" like Materia and the Draw System, but they both contained stories that, in my opinion, were pretty terrible. I don't find myself replaying them because it would be like re-reading a book just to enjoy the grammar.
But both of those installments were outrageously successful and - save for a handful of exceptions - that pattern hasn't really let up since then.
Square can design the games without a problem but, nowadays, they just seem to be missing the mark on the very component that made their earlier games, such as Chrono Trigger and FFVI, legendary.