Saying the Final Fantasy Series sank with Final Fantasy VII is just someone who is looking into a rearview mirror and refusing to see down the road. FFVII was the hallmark game for the Playstation, and is largely responsible for making Sony the giant it is today.
There was innovation out the wazoo in FFVII, saying there wasn't is refusing to believe the grass is green.
FFVIII, I'm not saying it was bad, but I Understand.
RPG combat is constantly being redesigned to keep it from being boring, or at least having a reason to keep fighting. Sure, the combat itself is boring, but you play for the rewards. Skill points, mana points, it's all the same. (Gold = not a reward) The game that made combat most interesting was Legend of Dragoons, and: Super mario RPG. Superstar Saga is doing it also.
Normally, reading those insulting comments about Final Fantasy VII gets me pretty hot because it shows a refusal to change, but you levied it well with the Suikoden II comment. Suikoden II is the best RPG I've ever played, but it wasn't the storyline that kept me interested, it was all the little bits of character information and neat mini-games (wack a mole, I curse you!)
Combat in that game was boring as well, but I like finding new combinations. Suikoden III had that aspect right for combat, where it would tell you on the formation screen which character would form a combination attack.
Oh, and VP was made by Square Enix.