Driving is considered a privilege not a right, therefore the government dictates the standards.

I don't believe there is any charge under the Highway Traffic Act for removing an airbag, I can look into it if you really need to know.

I believe removal (deactivation) of the airbag is a fail on a mechanical, depending on how you interpret the standard. You could always place a call to the MTO to confirm it.

Between the implementation of airbags and 2012, the NHTSA credits 42,856 frontal airbag saves.
https://www.nhtsa.gov/staticfiles/co...Fact-Sheet.pdf

I did a quick search and the statistic I found was 12 defective airbag related deaths, Honda seems to be one of the worst vehicles.