Short answer: Yes.
Longer, likely to be more accurate answer: Each game (rumored to be 3 in total) will exist as it's own full game. The expectation is that this one will end as you leave Midgar after the motorcycle chase/Motor Ball. However, it's been confirmed Motor Ball is not the last boss and a Jenova fight is a part of this release. So the game(s) use the original as a framework, with additional depth/open world tweaks about it.
The story structure exists as Chapters, with Chapter 1 being the original Bombing run and I think I saw somewhere that Chapter 10 is Honey Bee Inn/Aps fight. They've shown Cloud, Barrett, Aeris, and Tifa as playable characters and that Red XIII is in it (when rescued from Hojo) but is not playable in this release. It took me ~45min to complete Ch.1 and some of the cut scenes/story elements were removed from that.
So they are breaking the story-line into multiple parts, but making each part a reasonable length (and hopefully some restructuring of the story elements to make things clearer and not a big mindfuck e.g. Sephiroth never actually being Sephiroth until the end). I'm excited. I think you should be if you were a fan of the original, and if you want to wait to see reasonable gameplay times for each "episode" before taking the plunge I get that too.