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Its called Final Fantasy because it was going to be Square's final game since the company was on the verge of going out of business.
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Also I think they now justify it as being the 'final fantasy' for whatever world it is set in.
XII is very cool, but very different. It's way more 'classic RPG'-ish. In fact I can see some people hating it because of the change, but I think it's cool.
My favourite is VII, of course. IX is second, and it doesn't get near enough praise.