This is the iNat help page where that journal post copied the language from:
The data are still there, you just have to turn on Casual grade or uncheck "Verifiable." Yes, lumped with zoo animals/pets, but depending on the species it might not be that difficult to sort through them. Some specific examples might be helpful for discussion.
It's not always possible to tell what the situation is from a single photo, as you say, whether the creature is really loose, deliberately being kept alive, and/or whether it's likely to be recaptured.
I do agree that it's not a perfect system e.g. I personally wouldn't mark a gecko being transported on a house plant from Florida to Canada as "not wild." I would preferably be able to mark it as something closer to "waif." But still, seeing that distant little blue circle persist on the map of observations irks me a little. :)
cassi