The fiberboard and red oak are used as calibration points to which everything else is judged.
Horizontal surface spread is used in this manner to trap heat and fumes. This exacerbates fire spread in that auto-ignition and flash-point feed the continuation of the fire, and spread. A vertical wall, while it may exhibit 'pretty' flame spread, may not burn as intensely due to how vapors rise, etc etc. Think of how many times you've burned something vertically to have it run out of fuel because the advancing front is beyond the bulk of the material.
From an 2006 IBC standpoint (falling under Interior Finishes), it's the horizontal spread that is the most dangerous, as the primary concern is to minimize the ability of a building to trap its inhabitants as it spreads from room to hallways. There's a table (803.5) that lays out the class restrictions based on sprinkler availability, occupancy type, and whether it's a room, hallway, or exit. The exit being the most stringent for obvious reasons.
edit: I went into the weeds. We can just chalk it up to industry vs layman jargon mismatch. People buying Medite FR are beholden to the architect's specs, just as we have various VOC requirements as well.