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[Moderator note (bmah): Edited to remove names, email addresses, and contact information of various parties. I have substituted them with the notation "(redacted)"]
A dealer is not constrained by this policy, only owners wishing to sell private party are hampered by this policy. Dealer's can issue a temporary registration which Tesla will accept. Shouldn't owners wishing to sell private party be accorded a similar courtesy?
That's a question for the California legislature. Dealers can issue a temporary registration on behalf of the state because the state allows them to. Courtesy has nothing to do with it, as there is no legal basis for a private party seller to issue a temporary registration.
Honestly, I don't have a problem with Tesla requiring a registration (temporary or otherwise) before removing that vehicle from one person's account and adding it to another. I agree that it's an inconvenience, but it isn't a heck of a lot more than that. You can't use the app, but believe me that the app isn't all that wonderful. It's not as if you cannot drive and enjoy the car.