My opinion is that "normal RAW" is being read overly restrictively. At least, by changing the target of the spell from "living creature" in the less powerful version to "creature" in the more powerful version, we know that the more powerful spell works on Undead.
And when you compare the wording:
https://www.d20srd.org/srd/spells/po...hAnyObject.htm
This spell functions like polymorph, except that it changes one object or creature into another.
https://www.d20srd.org/srd/spells/polymorph.htm
This spell functions like alter self, except that you change the willing subject into another form of living creature.
it seems fairly unambiguous that the "living creature" restriction, on what you can turn into, is dropped.