I can explain it, sort of.
Squaresoft left Nintendo when the Playstation (or maybe it was Dreamcast) came out because they would rather make RPGs on a system that could hold more memory. I think something about Sony being a more potential seller had a part in it as well.
Of course, if Squaresoft were to have stuck with the Nintendo 64, then that would have been awesome. But we've seen the limits of the machine. Squaresoft wanted to go with a system that could hold more memory, to make a more amazing game. So they made several Final Fantasies (I'm getting tired of it going up to ten, though) on a different console.
With GameCube and Game Boy Advance around the corner, it sounds like Squaresoft wants to go back to Nintendo. But Mr. Yamawhoever said no. I don't know why he said this (I protest against that decision), but maybe because it's unacceptable to bring back a company that has betrayed you, maybe fearing that it could happen again in the future.
I bet some of our other fellow Fungi Forum people will help explain this better.
May Yoshi live long and prosper...
Oh, and may PenguinWizard have the same treatment.