Removing it would allow people to buy cheap cars in places like Mexico, that have loose emissions standards, and drive them around California, which has some of the most stringent emissions standards in the world. Not to mention the safety requirements issues...
I don't understand why the age of the vehicle should matter.
The 25 (well I think DOT is 20 years and EPA is 25 or vice versa) means you can import shit without it having to meet relevant federal standards. States (e.g. California) will still want to see proof it doesn't pollute too much, and CARB tests are expensive. Sates like Washington will let you register pretty much anything with wheels which is how you see a lot of non-US. market cars for sale out here with Washington plates.