People are spending their time and skills in creating good cars (ie that the market is willing to buy) from unusable cars.
They take say 5 bad ones and make 1 good one. That's like a 20% recycling - and the bad one can be sold for parts.
Why exactly is it a bad thing???
EDIT: Yes, I would be comfortable driving myself and my family in such a car. When I buy a car, I take it to a professional I chose (not one that the seller chose) for a 2nd inspection - one that I pay for myself. If the market can provide me such a car and a professional to evaluate the car, yes, I am quite comfortable with that.
Would you prefer "brand new" cars that have unknown defaults that can be fatal? (but that you will learn about only after N people died) These new cars passed all the government tests after all, so do you trust them more? A used car has an history - a professional know the defaults of that particular brand and model, and knows what to look for.
Maybe it's my own biais (aversion to uncertainty?), but everything fails. I prefer things (cars, computers, prescription drugs, etc.) which precise failures are known in advance, thanks to say 100k people having use that same thing for 5 years.
Unfortunately, that exclude most "new" things, since the models are constantly "upgraded".