Perhaps one might view things through slightly differently coloured glasses ?
I would submit that there is no reason for the theory exams to be "practical" - that's more the province of endorsement checkouts, line checks, local proficiency checks and so forth. I well recall a fairly standard mantra at Ansett back when: "you have to do the course exams but we aren't too worried about them (provided you pass). If you need to fail, that is the role of the check captain during, or at the end of, the endorsement program".
Perhaps the theory exams are to check that the candidate has actually read the books, has done a few practice calculations, and maybe, just maybe, has a bit of an idea of what's what with, and in, the subject material ?
That some of the questions get into the bowels of pedantry is unfortunate but that is an unfortunate sideline of the game, I guess ...