In the 3DS version of the game, the music certainly seems to have been reworked, or should i say, the mixing. It seems they went back to the original sound files for each mic and lowered / turned off the mic channels that were picking up reverb and ambiance. It's definitely the same recording, but now it sounds like it was recorded in a small studio.

I compered this:
https://www.youtube.com/watch?v=apzY1QfshNo

To some of these game-play videos:
https://www.youtube.com/user/nanarentotoro/videos

What are your thoughts on this?

It's difficult to tell via the earbuds I'm wearing heh.. Some of that 'far-away' sounding, unclear sound that the SS soundtrack had seems to be gone now? Maybe you're right! I wonder if a rip of the 3DS sound files exists to compare.. VIII is one of the most consistently quality suites in the series, it would really benefit from a better recording mix/new recording environment. I'd love to see it. In any case XI's soundtrack is worth looking forward too eventually!