This all makes sense to me. I suppose the biggest concern is the potential for hiss and electrical noise due to the tape head connection (is this even grounded?) followed by possibly poor analog electronics.
What prompted my question was a test drive I had in a 2006 luxury car that had CD/tape and no aux input, leaving a tape adapter or a FM transmitter as the only solutions for plugging something in short of cutting up or replacing the dash panel to provide enough room for a 1- or 2-DIN aftermarket unit. There are a number of pre-2007 cars like it that will last forever with regular maintenance, but it's hard to keep them technologically up to date.
A couple of years ago I moved from a '99 car with tape adapter to a '96 car with a FM transmitter. I miss the tape adapter.