-- FFVII: Reviving Aeris? --

Story and Gameplay segregation basically Items do not exist story wise in this situation which is why he never used a Phoenix down on her, they don't exist to him and the party they only exist for you the player to use.....Yes that is indeed stupid but it's the only explanation for why a character in an RPG with BLOODY REVIVE SPELLS AND ITEMS stay's dead and doesn't get hit with any (Worse if the story showed a character USING SAID ITEM OR SPELLS prior or afterwards (especially if it's a REVIVE SPELL)