I think it would be odd for a light sword to inflict instant KO.
Nope, I don't find anything odd about it personally.
Anyways, to your list of items.
BD - Virus [Casts "Virus" on enemy, Purple Bio visual effect] -> Plague
C7 - Quake [Damage based on fraction of enemy hp, non elemental] -> Earth Drum
D4 - Life [Life1 on one ally] -> Phoenix Down (Not fond of Life)
C5 - Barrier [Wall +Blink?] -> Wall (Reflect) + Protect + Shell + maybe Blink. (make rare drop)
CB - Scan [Scan enemies] -> Library (Not fond of Scan)
8A - Hastega [Cast Haste on all ally] -> Tailwind
B8 - Drain [A more potent version of Drain] -> Leech
C0 - FireBomb [Damage based on caster hp +Fire element bonus] -> Fire Grenade/Napalm (Bomb is too vague of a word)
C1 - IceBomb [Damage based on caster hp +Ice element bonus] -> Ice Grenade/Napalm (Bomb is too vague of a word)
C2 - BoltBomb [Damage based on caster hp +Thunder element bonus] -> Bolt Grenade/Napalm (Bomb is too vague of a word)
B7 - Osmose [A more potent version of Aspil] -> Absorption (Not fond of Osmose)
C4 - Explode [Explode, one enemy] -> Combust
D3 - Elixer [Recover all HP/MP to one] -> Spelled wrong (Elixir)
D5 - Soft [Cures Petrify] -> Golden Needle (Not fond of Soft)
D7 - X-Ether [Restore all MP to one] -> Dry Ether (X-Ether is an uncreative name)
E6 - Sight [Zoom out to view more of the map] -> Vision/Eagle Eyes/Bird's View (bird's-eye view)
E5 - Warp Stone [Warp out of dungeons or away from a battle] -> Teleport (Never care for the name Warp Stone, even in FFVI)
DE - Alert [Trigger a random battle] -> Great Hunt (Taken from Mythology/Folklore)
B3 - AirBomb [Casts valvalis' "Storm" on all enemies] -> Maelstrom (Behemoth and Valvalis tech - Bomb is too vague of a word)
B4 - Nightshade [Cast "Doom" on single target] -> Condemn (Waste of a good name, Nightshade sounds more like a dark spell)
B5 - WhiteFlame [Damage based on caster hp +Holy element bonus] -> Divine Flame/Holy Flame
C9 - Belladonna [Instant death on single target, Demolish visual effect] -> Demise/Annihilation/Eradication/Oblivion
CA - Summon [Cast a random summon] -> Evoke Tome
D0 - X-Potion [Recover a large amount of HP] -> Water of Life/Life Water/Aqua Vitae (X-Potion is an uncreative name)
B0 - FairyDust [Allure on all enemies, lamia hearts visual effect] -> Entice/Enchantment
E3 - Cabin [Recover all party HP/MP, map only] -> Cottage (Not fond of Cabin)
Is this all the items available, are there any more items that can be transformed? Or is this the final list?