When I looked into the numbers while playing the WSC version of the game, it dawned on me that racial resistances were not adhered to.. unlike racial weaknesses.
This also affects FF4A US and Jap 1.0 versions. This was fixed in FF4A Euro and Jap 1.1 versions.
Now, we truly know that the Loki's Lute is totally useless in the bugged version of this game.
How you test this:
You put a character with racial resistances with Mini or Toad status in the front row.
Compare it with a character w/o those racial resistances with Mini or Toad status in the front row.
The character with the racial resistances will by taking 1/2 as much damage... whereas the one w/o the resistances takes full raw damage from the monster.
We have EVEN MORE themes now, but some old ones are gone...