But you can only have pistols for formal target shooting or collecting purposes. So basically it's like saying "sure we are allowed to own cars, just can't take them out of the garage".

Actually until comparatively recently there were a lot of Canadian gun laws that were not as harsh as in the US. For isntance inter-state/provincial trade was/is allowed. So you can sell guns to an audience of 30+ million across the country. Or laws on short barreled shotguns. Not sure where all this stands now, but it sure isn't anything like as free overall.