Back in the original Final Fantasy 7, Cait Sith was one of a few average party members that Cloud could take into battle. His RNG-style limit break was only good in a pinch, and otherwise his overall stats and characteristics just weren't all that helpful for battle situations. Now presumably Cait Sith will return in Final Fantasy 7 Remake, but with almost every character receiving their own dedicated moveset, Cait Sith may end up like Red XIII did at the end of the first episode.
Cait Sith functioned kind of as a comic-relief or silly character in the original Final Fantasy 7, and that could still ring true in Final Fantasy 7 Remake. While the intended character arc for Cait Sith does somewhat align with the overarching story of Final Fantasy 7, Cait Sith's story is a bit confusing if fans try to read into it. As for Cait Sith's potential battle mechanics and participation, they could either be reformatted into a different purpose, or the Remake could just own it and Cait Sith is still a main battle character. At the same time, it's very possible the character won't have a traditional battle role like they did in the original Final Fantasy 7.
Cait Sith as a Support Role in FF7 Remake
To average players, it wouldn't be unfair to say the general consensus on Cait Sith's battle capability is pretty weak. Cait Sith's health, strength, magic, and defense stats are all sub par compared to other main party members in Final Fantasy 7. Cait Sith's only redeeming factor is the "Slots" Limit Break, which basically functions as a wild card. Slots can either nuke all opponents in the battle at max damage, or basically insta-kill the entire player's party. While it makes for a good highlight reel on YouTube or a viral clip on Twitch, most players aren't going to opt for slots during the One Winged Angel boss fight.
The same can probably said of Final Fantasy 7 Remake, especially considering how the battle system is vastly different compared to the original game. Every character has their own unique fighting style that is emphasized by their design, and Cait Sith is more of a giant blow up doll than an actual fighter. What would make more sense would be for Cait Sith to take on a support role, similar to that of Morgana or Futaba in Persona 5's battle system. Slots and Dice could be a supplementary RNG mechanic in battle that's rare but could still assist the party. Cait Sith's microphone could grace Cloud's party with the occasional buff and important battle information, so long as players can get beyond Cait Sith's absurd and vaguely Scottish accent.
Remake Owning Cait Sith's Quirkiness
Or Final Fantasy 7 Remake could make a similar move with Cloud's cross-dressing scene and just embrace the quirkiness of Cait Sith. Considering Cait Sith is an anthropomorphic plush cat riding an animatronic version of the iconic Moogle creature, Final Fantasy 7 Remake doesn't necessarily need to justify any personality changes for the character. Despite the Remake attempting to capture a darker tone for Final Fantasy 7, the reimagining has shown it's not averse to silly moments to break up the tension. Cait Sith does end up having a redeeming character moment in the Temple of Ancients, so his connection to the original game's story could be replicated in the Remake.
Cait Sith could even return as a playable party member in battle, despite how silly a modernized Cait Sith would look in combat. Watching Cait Sith fight in battle would be absurd, but Remake has brought back several other absurd monsters like the Hell House Boss, so it wouldn't be outside of the norm. All of Cait Sith's starting stats are lower than average when he joins the party in Final Fantasy 7, save for high Magic and Spirit stats at first. This could theoretically carry over into Remake, with Cait Sith primarily being played as a mage. His signature Dice and Slots Limit Breaks would be his defining x-factor again, even if his abilities can result in a full party wipe on luck alone.
One Way or Another, Cait Sith is Coming
Either way, Cait Sith certainly isn't going away in Final Fantasy 7 Remake. This reimagining of Final Fantasy 7 has made every effort to stay true to the original game, despite plenty of added flair sprinkled throughout Final Fantasy 7 Remake. Cait Sith's role has already been teased in Final Fantasy 7 Remake as an easter egg during the Sector 7 collapsing cutscene. Sooner or later, Cait Sith will be showing up, and it'll be interesting to see how his backstory is expanded. Cait Sith's connection to Reeve Tuesti and Shinra is fairly strange, and Remake will likely make this connection simultaneously more apparent, as well as making the dynamic all the more strange.
That being said, it would make the most sense of Cait Sith ended up as a non-playable party member in Final Fantasy 7 Remake. Some of his definitive quirks like Dice and Slots could be reworked into a supplementary battle system with a few tweaks. They were never a super strong ally in the original Final Fantasy 7, as Cait Sith was only serviceable in battle as a mage anyway. Cait Sith taking on a support role makes sense not only for his battle design, but his personality would be better placed in a role like that anyway.
Final Fantasy 7 Remake Part 2 is reportedly in development.