But morally it is.
I hated it when it first came out as I felt as an FI we were expected to act as examiners, when we weren't trained or paid to do so, but having seen the gradual increase in standards because of having a pseudo test every couple of years, then I'm now for it, but I'd prefer a system of an LPC every couple of years such as you get with every other rating in flying.
If you fly an R22, then you need an LPC every year, if you fly 737 you need an LPC every year and an OPC every 6 months. MEP, every year. Why the difference with SEP? You can kill yourself just as easily in an SEP as in anything else.