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The game has to be created reasonable enough to beat. There are people who don't play as long or hard as others so it has to be beatable at some point.
I also maxed the SNES version(original). I had it for the PS and I noticed right away Gau couldn't equip merit award. Made him too strong if he isn't strong enough as it is. He can still use Magic.
I was also the first to discover all four treasure chest ribbons in my family in the game like FFV. (Theme here anyone?) I also first found of my friends that Gogo can have up to three abilities.
I chose at the end.
Mimic
Lore
Magic
Item.
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Don't men to bump up such an old thread but I did hear an interesting bit of information concerning the subject matter.
When asked about the fate of Banon and Arvis, Sakeguchi simply answered "Use your imagination". So yeah, even Square won't answer the question.
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I think it's more of a "we didn't think about that" kind of thing. It's quite possible they will hear word of some fan explanations and adopt one, but it didn't seem overly important to them.