I definitely didn't expect to see another trailer so soon. This one actually has some gameplay in it, so that's cool. The graphical upgrade looks nice. The attack animations and effects were beautiful and the areas were great, so I'm a fan of that. I will say that Cloud looked a bit scrawnier than he's usually been portrayed, but it was the face that I noticed the most. It just looks... vaguely like Cloud's face, but it's kind of ugly-looking and has honestly been done way better in every other iteration, by which I mean Dissidia, Dirge of Cerberus, Crisis Core, and especially Advent Children. I was really hoping to see a face similar to Advent Children's face, but unfortunately that didn't happen. But while it's a point that bothers me, it's not a game-killer.
To talk about a different point, and what was probably my biggest concern regarding both this game and Cloud's appearance in Sm4sh, I was SUUUPER happy to hear Steve Burton doing Cloud's voice again. I hope they never never never drop that guy when it comes to localized FFVII content, because he does Cloud like nobody else could. He fits the character so perfectly, and I hope we get him for an English VA in Sm4sh too, because honestly, the Japanese actor just isn't the same. (Also, I like how they dropped Cloud's signature "Not interested" line in the trailer. ^^)
Combat looked interesting. While there was the classic "Attack" "Magic" "Items" etc. menu on the side, it appeared to be occuring in real time, with Cloud being able to move freely and change targets. It reminded me of Dissidia's "RPG Mode" gameplay setting, for those who are familiar with that.
A final point, I've heard that the game will likely be split into three separate games, which is one of the most disappointing parts for me. I really hope each "game" lasts longer than the contents of the three discs the original FFVII used, or otherwise they'd better each be cheaper than a new game would normally be. I get that Square Enix needs to make a profit, but I hope this doesn't end up screwing the fans because of that.