Everything you said is true, but it doesn't change my point, which is that opthalmologist has no idea what she's talking about :-) In practice green lasers sell because they're bright, and they crank up the power because everyone wants moar bright, and that's all there is to it.
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The part I find interesting is that the coupling is good enough by just sticking it in front. Usually you have a lamp around a laser rod, with reflectors. This is just a 1mm² crystal facet receiving maybe 1% of the light coming out of the much larger flash head :)
Also, the IR problem may be on its way out, thankfully. Direct green diodes are a thing now; all the laser projectors I currently own use them. Zero IR leakage from those, of course.