They've had the system for a while now, and its only paying for itself now. The MOT stations and insurance companies are now pretty much all linked into the new DVLA system. If you don't get a 'PRINTED MOT' then its probably a dodgy MOT station, or there manually entering the details.
I think its a cracking idea, and i think the only reason they've made this program is to show everyone that they've got a new toy, and they will get caught.
The reason they don't give them to breakers is because they could be put back on the road, as is, most of the time if they don't have an MOT it cause its failed, now, due to the new mot system if it fails it gets logged onto the DVLA instantly that its failed, so this then shows up as failed on the database, rather than forgot.
A mate of mine was pulled over by a copper who had the system in his car, as it flags up if there is anything wrong with the owner i.e. if they are wanted (so I have been told). He got arrested, car towed and locked up in a cell for the night. Turned out it was for a crime he didn't commit and had been cleared of 2 years earlier but had been dealt with properly. Next day when it got cleared up he was let out of the cell's, then had to make his own arangements to get home, get the car documents and get back to the impound so he could prove the car was his - sorry but thats bang out of order if you ask me, it wasn't his fault yet he had to sort it at his cost!! That alone went to show the system isn't perfect, although I agree for its main purpose of catching illegal cars its good!