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It seems backwards to me as well. Safety inspection should consist of at least a brake test along with a visual check. If your car is held together with drywall screws it shouldn't be on the road.
As time goes on, the majority of cars on the road will have OBD2, so a simple glance to see if the check engine light on is all it would need. Even most of the older cars with OBD1 should pass with the check engine light off, and there is a catalytic converter. In the grand scheme of things, I think these older cars really don't pollute that much, when you look at industrial cities around the world.
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