I'm with you on the "subject"; I pronounce it as "seed". I'm not sure if you have used this reasoning but where do SeeD members live? In a gardern (i.e., Galbadia Garden, Trabia Garden & Balamb Garden). What does a person plant in a garden? Seeds. It makes sense and is most logical to pronounce SeeD as "seed".
If the Garden's were called "Discman" than "CD" would be more of an appropriate pronunciation.
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