Launch Conditions are prerequisites for the installation to proceed, and the behavior you see is normal. Not only is it normal behavior with many setups, it's also the way Visual Studio generates the launch conditionsand you can't change them.
Also, understand that Visual Studio custom actions happen after the installation, not before, so by the time you do your checkin a custom action the setup is pretty much finished, and if you abort it then it will roll back. Your choices are leave the behavior as it is, use another tool that has the features you want and build your MSI file with it, or learn enough about the content of an MSI file to post-process it with an MSI editor like Orca.