Yeah you're correct on the footing being used to distribute the load across a larger surface.
I'm sure it'll be fine, designs are all dictated by code now which are way over designed. The factor of safety when designing for soil pressures is 3 therefore you're designing it to take 3 times the load. The reason to tie the wall into the foundation is to the get that lateral pressure from the soil into the vertical bars then into the footing. Without tying it in you're relying on friction between the block and the conc to get that load out. And yeah the weight of the wall will definitely help increase the friction force too. If you do have cracking/water leaking issues or pray it doesn't but failure later on I'd have them get those bars into the foundation next time. We have a retaining wall at our house that I know doesn't have reinf in it and it's doing fine so far.
Sorry to get all nerdy lol
I love seeing the construction pics tho! I could visit construction sites all day.