I think Clex Plays tested most of that in a video, and he should say pretty much what you say, except it was with Ragnarok, so without optimal damage display.
Note that it says "% of weapon base damage becomes elemental", not "% of weapon damage" or "% of physical damage".
See at 14:00 here :
https://www.youtube.com/watch?v=Jo08phWvC4o&t=840s