This is an honest question since my state doesn't do inspections.
Some cars are made with factory full hydraulic and even drive by wire steering systems. Orbital valves will still push fluid even if your pump stops turning. Tractors use hydraulic steering, most construction equipment has hydraulic steering. It's not unsafe when properly installed so why can't it pass an inspection. I would think it would be safer and more likely to pass inspection than "hydraulic assist" which sounds more dangerous because of the drag mentioned in previous posts due to an overtaxed pump trying to run 2 systems that don't always get along. Personally I would think using the right control valve to push a double ended ram with two short drag links connected firmly to the axle and the knuckles would be more of an upgrade than a safety issue when compared to the modified gear box method. But thats just me.
Just curious what vehicles you are refering to that are full hydraulic from the factory or drive by wire? Never seen a factory setup that way and would like to.