Agreed, and I'd go further. If nobody is reviewing citations they may as well not exist. Why bother?
2. If the paper turns out to be important, people will bother.
3. There's checking for cursory correctness, and there's forensic torture.
I mean, in college I have had to review papers, and so took peer review lectures, and nowhere in there was it ever stated that citations are not the reviewer's job. In fact, citation verification was one to the most important parts of the lectures, as in, how to find original sources (when authoring), and how to verify them (when reviewing).
When did peer review get redefined?