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•... while the L1 and R1 buttons allow for full 360 degrees of panning around the character.
•These features are most likely intended to make it possible to see the character in unusual landscapes such as high mountains. Navigation would be difficult without the line of sight.
•However, the camera features also give the player control of cinematic effect. If he would like to feel lost in the wilderness, he can spin the camera so that all he sees are natural features, cutting out evidence of a nearby town. If he would like to emphasize a triumphant march on a city, he can lower the camera from the bird's eye view and spin it until the city is directly ahead.
•One more note -- we only see Squall here, but experienced Final Fantasy players know (and cinematic progression from one environment to another implies) that the character is actually moving all three members of the current party. When a battle begins, all three characters will participate, by default.