Plus: doesn't magnesium oxidize more readily than other metals? I would worry that grandpa's magnesium ladder is a death trap.

Bulk metals are extremely difficult to ignite and magnesium in particular forms a very strong passivation layer on the surface as soon as it touches the air. Unless you're doing wildly inappropriate things like welding on it (tip: don't do this with any ladders, regardless of material), it's fine.