Upon checking out the site itself, I found that the article contained no reference links, and, as it turns out, the information itself was pulled from a Japanese fansite, not Famitsu itself, as was implied. I went to Adventchildren.net in search of similar info, and found that as far as dead Shinra characters go, there are no named names (this is in both the site's translation and my own raw trans. of their source through Babelfish). There's also an interview with Tetsuya Nomura where he hints at possible appearances by Red XIII and Cait Sith.
Honestly, I don't think Square would be that careless to give away who's alive and who's not. For one thing, it kills some of the speculation surrounding the Wheelchair Person's true identity. For another, despite which characters are the most popular or not, I for one believe that if any one of the eight surviving members of the original party were absent, it would lessen the role of the sequel. All of them enriched the FF7 story in their own ways. I have faith that all of them will appear, despite whatever popularity contests exist-- consider that Barret is confirmed to be in AC, but he's not nearly as popular as, say, Cid, or even Yuffie.