Yeah, I abhor the PSP remakes of FF1 and 2 out of principle. Come the fuck on Square Enix, you just re-released those on the PSX and the GBA, which had BOTH games and sold for $30, MAYBE $5 on the GBA. Now you seriously want us to re-rebuy them individually for the same price as when they were bundled? At least price them at $20 for god's sake, or make them as overhauled as III was. You can't even make a strong argument about people not having access to them, as damn near everyone has a Playstation console of some sort or a GBA. This pretty much leaves it only for the really diehard or the Sony hardcore that refuse to even look at a Nintendo system, yet for some reason want those original games portable.
Also, as for new games: Do you mean completely original titles Lard, or just something that's not a port/remake? Because what you said matches with original titles well enough, but not really ports/remakes, except maybe for the GBA. But that can be forgiven since SE and Nintendo finally kissed and made up, and only started releasing games in the US in late 2003... And the DS came out a year later.
Something else to note though: Square released next to nothing during the transition phase from PSX to PS2. They got a crapload out in 2000, just before and shortly after the PS2 was released, but in 2001 and 2002 things went very quiet. Take a look for yourself.
Quite a few Enix releases, but only 4 Square ones, and one of those was the PSX port of FFIV and CT. And then 2002, it was more or less dead for both of them, just Grandia Xtreme and R.A.D. for Enix, and KH1 all alone for the PS2. Between getting remakes like FFIV and a major game, or just the major game and nothing else, I'll take the former.
Edit: Also, even if you say 'that's money better devoted to new games', when there's NOTHING coming out in between them, then they need to put something in there to fund them. Relatively small amount of money used to generate more and help those big new games like Last Remnant.