Lots of food for fanfic thought here.
This creature here, Vajradhara Asura - its English genus name, Vajradhara, "is a term that refers to a very important and high-level tantric understanding of the Buddha" according to a fanfic friend of mine who is a Tibetan buddhist and works for a lama. Now of course I don't know how much thought the translators put into choosing this name, and whether it has any meaning within the context of the game beyond the fact that it sounds good....
Its name in Japanese is 金剛坊, bongou-bou, which can translate, as far as I can tell, into "adamant monk" (or "hard boy"). A name which, if nothing else, at least leaves it possible to infer that the creature is a "hardened boy", a transformed boy.
It's difficult to see how the Wutaians could have made the war last so long if they didn't have some kind of strength to fall back on, and "magical transformations" would do it. I wonder how they achieved those transformations? Something ritualistic involving mako, I'm sure.
Now I'm imagining Hojo growing up in this culture and being disgusted by it, by how they call the transformations "magic" or "divine interventions", and he devotes his entire life to figuring out the science of how it works. Also, it would be cool if the transformation were controlled by the person doing the transforming, and were only temporary, whereas Hojo has figured out how to induce a permanent transformation, and one where the locus of control lies with
him, the transformer (the scientist, the magician) rather than with the transformed.
I also can't see why President Shinra would want the Wutai War to drag on any longer than it has to. It's a huge financial drain on the company and it distracts from the serious business of finding the promised land.