I think anything that incentivises elderly people to give up driving when they become a danger to themselves and others is a good thing.
My own grandfather is 90 and still driving a massive land rover, he won't downsize car because he's always had a land rover. He tootles 2 minutes drive to the shops once a week and drives to his Drs appointments another 3 minute drive away. If the car does 8miles a week that's it. He won't give up his car because the busses are not frequent enough, they don't go where he wants to go, taxis are too expensive - he has every excuse going for not giving up the car. We've already used the taxis are cheaper than insuring the car, we will drive you ect. He passed his eye test, the GP says he can drive, he fills out his renewal paperwork for driving when it comes up and off he goes. My dad plans to hide the keys and sell the car the moment he has a bump but so far he's not had any.
Our local Morrison's car park and indeed town centre between 10am and 1.30 pm on a Thursday and Saturday is basically bumper cars with the sheer volume of elderly drivers on the road. Every Thursday and Saturday there are multiple bumps/ scrapes and near misses posted on our local community Facebook page with offending car number plate and 99,% of the time it's "sorry that's my elderly mother's/ fathers car, we are trying to make them give up driving, please can you report this" responses.
The other day I saw a woman who was pushing 90 nearly run over a young child at the zebra crossing, she basically approached the crossing and continued to drive over the crossing at speed whilst a young family were on the crossing. It was as if she didn't see them. Incident later ended up on Facebook, it seems the elderly lady in question is a notoriously dangerous driver and has had several near misses and bumps over the past couple of years. I've seen elderly people park in car parks by basically bumper car logic of bump, go forward, bump, reverse, bump turn wheel.
I did actually report an elderly driver to 101 a few months ago after following them through town. All over the road, had a near miss with a pedestrian, nearly hit a bike. Pulled into the supermarket car park and then bumper car parked hitting the trolley bay twice. 101 did actually ring me back and thank me for reporting.
Perhaps more stringent checks need to be made on elderly drivers as well as just filling out the form for renewal every couple of years. Even a requirement to do a few advanced driving lessons with an instructor would help.