In California, it doesn't cost more to register an out of state vehicle, so the "money grab" argument doesn't hold water.
As I posted earlier today, the OP can get the visual inspection done in a variety of ways. This visual inspection is done to verify the VIN, FMVSS, and emissions. It is done with every out of state vehicle purchase, as well as incomplete chassis builds. If sold in California, the dealer has already certified the vehicle so it is not necessary for the buyer to do it. If sold out of state, then it hasn't been verified and so the buyer must do it.