I think it depends on whether you think the record ought to represent a chess-style intellectual feat or a physical dexterity feat.
In the inspection time they've clearly started the intellectual feat - just not the dexterity one.
My issue with saying "they're already solving the cube" is the implication that more inspection time would let you get even shorter solve times and I don't think that's the case (unless you went really ridiculous and gave everyone an hour to do a smallest-moves solve on paper).
(There are also practical issues with this kind of format that nsilvestri pointed out that I hadn't originally considered.)
I think it is one of the more interesting and underappreciated events, though it likely gets fewer entries due to the time commitment.
https://www.worldcubeassociation.org/regulations/#article-E-...