B737 FLC ON APCH TO ONT RWY 26 ENCOUNTERS NORAC ACFT TRANSITIONING ACROSS THE FINAL IN THE ONT VFR FLY-AWAY.

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ON APCH TO ONT/RWY 26L; ONT TWR CALLED TFC 'PROBABLY A BANNER TOW' AT 11 O'CLOCK POS; MOVING N AT 2500 FT. WE RECEIVED A TA ON TCASII AND MADE VISUAL CONTACT WITH THE LIGHT ACFT TOWING A BANNER. THE ACFT CROSSED THE LOC COURSE AT APPROX 6.5 MI AT 2500 FT. THE ACFT WAS R ON THE GS WHEN HE CROSSED THE LOC IN FRONT OF US. IT APPEARED THAT THE ACFT WAS COMING FROM RIVERSIDE; CHINO; OR CORONA AND FLYING N TO THE CALIFORNIA SPEEDWAY WHICH HAD A RACE IN PROGRESS. THE VISIBILITY WAS RPTED AS 4 MI IN HAZE. THE FLT VISIBILITY WAS APPROX 2-3 MI. WHEN I QUESTIONED ONT TWR ABOUT THE TFC AND RPTED THAT THE BANNER TOW ACFT HAD CROSSED IN THE LOC IN FRONT OF US RIGHT ON GS; ONT TWR RESPONDED THAT THE ACFT WAS NOT IN RADIO CONTACT AND CONTACT WAS NOT REQUIRED. HE STATED THAT; 'THEY HAD TRIED TO GET THE AIRSPACE AROUND THE ILS CHANGED FOR YRS.' WHILE ONT IS SURROUNDED BY CLASS C AIRSPACE; THERE IS A CORRIDOR OF CLASS E AIRSPACE JUST E OF ONT. VFR ACFT CAN PASS THROUGH THIS CORRIDOR R ON LOC AND GS WITHOUT TALKING TO ANYONE; AS DID THE ACFT THAT PASSED RIGHT IN FRONT OF US. THE AIR TFC DENSITY AROUND ONT IS DANGEROUS ENOUGH WITHOUT ACFT XING THE LOC ON GS; APPROX 1 MI IN FRONT OF US. THE FAA NEEDS TO REMOVE THE CLASS E CORRIDOR BEFORE A MAJOR DISASTER OCCURS.