For *much* more information read Matthew Spring's book "The Lute in Britain".

A bit more detail here: http://www.liuto.com/liuto.php?lang=English

The only reason I can think of for tuning a lute like a guitar would be if you were deliberately trying to persuade your listeners that lute music was boring and pointless. There's a guy who used to busk in Edinburgh High Street in a commedia dell'arte costume. He mimed playing a lute while playing recorded Spanish guitar music through a portable PA hidden under a rug. He probably fooled most passers-by, and it seems Renaissance Faires have a clientele which is on average even stupider.