Sephiroth Seeks to Rule Final Fantasy Multiverse, Sparking Conflicts While Cloud Hallucinates
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Sephiroth plans to rule over the Final Fantasy 7 multiverse by causing a "Homecoming" - the union of all realities. He'll then likely destroy the unified multiverse.
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Aerith dies again, but lives on as a spirit. She promises Cloud she'll protect the planet, while Cloud promises to defeat Sephiroth.
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Cloud is mentally connected to Sephiroth and may be experiencing hallucinations, as hinted by his mind "glitching".
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Sephiroth creates Glenn Lodbrok to spark war between Shinra and Wutai as a distraction from the Promised Land.
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The stage is set for war between Shinra and Wutai in the trilogy's final game, while Sephiroth continues seeking the Promised Land.