Dependency with hook_requirements that fail still allows dependents to install

This can be more clearly explained with an example.

Module 1 - has hook_requirement()
Module 2 - dependent on Module 1

When installing both modules the following occurs.

Module 1 hook_requirements() has a failure
Module 2 is installed

Module 2 malfunctions due to missing dependency and a WSOD results.

Not sure if this is by design (as in don't want to deal with it) or what.