I have heard complaint from a mechanic here in Manitoba that the inspections do miss some safety related items. For instance, an automatic transmission line that is badly leaking is not a safety issue by Manitoba inspection standards. I can assure you that it is when the fluid catches fire on the hot exhaust. He queried the inspection section of Manitoba and they told him it was not an issue for the inspection form, and there was nothing he could do.
We do not have the corrosion problems here in Manitoba that you guys out East have, so brake lines rusting through are not really an issue. But I can certainly understand why it would be in Southern Ontario.
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