Tires over time breakdown in to its original components if those components are toxic then its not environmentally friendly over time. Is there oil in tires??
look up plastic ocean as an example of how something breaks down over time and becomes toxic as a result. Even if the plastic was harmless in its solid form.
ScienceDirect - Chemosphere : Environmental labeling of car tires—toxicity to Daphnia magna can be used as a screening method
I don't think even treated rubber would be safe after the first couple of years due to oxidization which would release water soluble toxins which were locked deeper within the rubber where the treatment solution could not reach to remove the toxins.