It's entirely possible Sakaguchi would go mad with enough time, but I think it's clear he was a good creative and project leader at Square. For FF7, he created many of the overall concepts like midgar and then was the producer for the game, keeping the other writers and artists in line.

Without The Spirits Within disaster, he would be a major exec at Square, possibly even CEO, but more likely just head of R&D. Someone with real game and story backgrounds is badly needed at Modern Square, which is mostly a bunch of Keiji Inafune get rich quick scheme style executives who don't have an eye for good games or stories. It's why Square is so lost and listless right now.

I feel Sak would have ensured that FF7 remake would be more faithful to the original and keep Nomura, Kitase, and Nojima, in line.