I actually like the CARB EO process. It makes a lot of sense. Automotive emissions is a lot more complex than doing a single test of a hot car on a dyno, or even than keeping an OBD-II system happy. California could have said "no modifications to anything that can affect emissions" and that would have been that. Instead, they gave us the ability to prove that a modification does not affect emissions. Basically, put the part through the same tests the OEs have to pass and measure it. Then, if it doesn't change things, you get the EO and you're good to go. It's actually pretty logical.
I also understand why CA has the emissions regs it does. I've only seen the "after", but the air quality generally sucks. If you want to put that many people in a state, then you're going to have to come up with a way to keep them all healthy. Dirty air is really expensive to a society.
Yes, it's possible to make a part that doesn't affect emissions and save yourself money by not doing the tests. But without doing the tests, you can't prove it doesn't affect things. And on modern cars, it can be quite tricky to modify something without changing something else. OE engineers are good and under real pressure to come up with clean, efficient, powerful cars. Kinda like "fast, cheap, good", it's a tripod where it's quite easy to change one leg and mess up the others.
California has done the math and realized it's easiest to stop non-conforming products at the source. Either the manufacturers of the products - who may not actually do business in the state, which might make jurisdiction difficult - or the ones actually marketing and selling them. They've already hit some of the manufacturers. And now, with JEGS, they're going after the big distributors.
"Race car use only" is another thorny issue that the EPA and SEMA are wrestling over. Perhaps it needs to be made very clear when you're selling. Of course, if you're selling chip tunes that have a "towing" setting, it's pretty hard to explain how that's used in a race car.
We in the aftermarket are very aware of this. It's no coincidence that FM has been spending a bunch of money and time on getting EOs for as many products as we can. We label each part as to whether it's legal for use in CA or not on our website. It's not an easy or cheap process, but it's a sign of good faith and allows both us and our customers to be legal. Some are sticking their fingers in their ears and just hoping they won't get noticed as they shovel money into boxes, others are taking our route and doing the right thing. Vendors who do the former may not be around much longer.