InlineRef is used in the runtime to be able to refer to a component not by a URL that points to an XML file, but by a string directly. This is used for programmatically deploying partial components for instance.
However there is code that registers inline: as a valid URL stream handler factory. This code is complex and there's probably no need to have these URLs.
In addition, this code interacts badly with an embedded Tomcat, which needs to register its own URL stream handler factory.