On my automatic 740, regardless of whether the key is in, i can engage the shifter as long as i push the brake. Likewise, i can remove the keys when i stop the car in neutral.

This can't be right, these cars aren't normally like that are they? I checked, the starter wont engage except for the N and P positions, so it is not super dangerous but still.

Is there a lockout relay or switch somewhere i need to check or is this just standard.

I realize that this doesnt differ much from moving a stick shift when the cars off. But every automatic ive driven locks the shifter in park and it cannot be moved without a key...

 

Back in a time most people under 30 can't remember, people weren't totally stupid and litigious. Most all older cars do not have (nor did they need) a shift lock.
However, as drivers and society in general have become dumber and more inclined to blame others, the shift lock was invented.
I believe Audi first fitted it to North American cars, as they were sued to within an inch of going out of business........

Regards, Andrew.