Sephiroth isn't the villain, Jenova is. Through the whole game, Cloud and Sephiroth are controlled by her "puppet hands." Only difference is Cloud broke out of it.
This is the theory you are talking about I believe, I posted it on the old boards
http://ourworld.compuserve.com/homep...olilli/ff7.htm
Oh and Manowar, Mystic Quest is being dissed cause it sucked. Who cares if it got you to play "good" games. Some people were already playing good games.