I'm sorry, but so far as I've ever read, this is just plain wrong. You're loosely describing how paging and virtual memory work, not OSX's Inactive RAM.
The actual answer, and this is backed up by a (rather minimal) support page at Apple's site:
http://docs.info.apple.com/article.html?artnum=107918
...is this: Incative memory is, basically, information that has been loaded into memory and marked as "no longer necessary", but is being kept around by the OS just in case it's needed again.
So, if you open a hypothetical application, it loads 100MB of its stuff into RAM. That RAM is now in use. You then quit it. That 100MB is no longer in use, but instead of just throwing it out completely, OSX keeps that data in RAM in case you open the same program again. If you do, less loading from disk is necessary, so the application opens faster. If, on the other hand, that RAM is needed for something else (you open a different program and there's no more free RAM left), then it gets (instantly) thrown out in favor of the new data.
So basically Inactive RAM is a normal function of the OS, can for most purposes be considered to be just like Free RAM, except a little better because it might get used again.
This question is asked so frequently that there really should be a sticky or something with a concice explanation...