They are probably relying on the leakage on the CAN lines and the ESD diode to keep the internal isolated ground close enough for it to work. Since its isolated it can float to anything it wants and since its connected to the CAN lines it will float to that potential.
And yes any delay is similar to adding cable length. Due to how CAN works it still needs to get the acknowledge bit in time from behind the isolator. You need something more application specific to avoid that, like a CAN forwarder that treats both sides as two separate CAN network and just forwards any packets it sees onto the other one. The CAN forwarder always acknowledges it so you have no confirmation it was delivered, but it means you can have as much cable length as you want by stringing enough of these.
CAN is not very good for long cables in general. RS485 is more suited for it