You literally have the word "removed" in the reply that I've quoted, what do you mean you're not talking about removing feedbacks from inactive members. Loan defaulting is another case though, I think that there's should never be a removal even if they've paid their defaulted loan, maybe just changing it to neutral to indicate that this person has defaulted a loan but have paid it eventually. Even if it's not removed, pretty sure other DT members can step in to leave a neutral trust so as to help them clarify the information about why there's still a red trust.
I haven't said anywhere that feedback left by inactive members should be removed. I just said that in some cases such outdated feedbacks might be bigger or smaller issue.
I agree with your point about defaulted loans which were paid later that at least neutral feedback should remain for future reference.