When an indie developer does an HD remake, it's a labor of love. Each sprite is scaled up meticulously and a lot of thought is put into how to make the game look the best.
When a big company like Squeenix does an HD remake, they toss it to a third party, who will do...well, pretty much what you see here. FFV has never been a big moneymaker for Square (wasn't even originally released in the US, so the nostalgia factor isn't even there for many of us who grew up with their games), so I'm guessing "cheap and good enough" trumped "actually good".
What's funny is that those who are nostalgic for these games (or who just think they're better than most of the stuff on the market today) are willing to work long and hard with no monetary compensation to produce actually good versions of the game in question. I wonder if there's some way for Square to work with these folks to produce a legal, well-done version of the game for Steam. Probably too risky, but it's a shame.