Is it that hard of a concept to understand? They have been released again (hence re-release) so people who previously couldn't buy them now can. Unless you're confusing all this with "remakes", in which case you can sleep soundly knowing that SE couldn't remake this many titles at once.

It's basically nothing short of a ripoff since there's no reason to pay $20 for a copy of FFVII when you can get a perfectly worthwhile copy at Gamestop for $9.99. It might lower the relative cost of these games on eBay, though. Overall useful just so that certain products become more available and less rare.

Besides, you can play PS1 games on your PS2 (and PS3).

Except it's over in Japan, not that I know what their retailers are like with games. Over here you can't get FF games that easily from second-hand dealers, some are 'rarer' than others.