GGV
I think if you take the trouble to inquire, you will find that the aircraft is insured, even if that offends predjudices against insursance companies, fellow pilots or whatever.
I doubt it.
In a recent incident where one of our aircraft flew with no emergency checklist, the major issue was insurance. An aircraft that is not operating in accordance with its certification documentation is unlikely to be insured, and that includes operating outside the MEL or having more pax than seats. I know this to be true. Now, perhaps you would like to quote from your employers insurance policy that specifically covers your aircraft in this situation?
There is endless speculation here that presents itself as factual discussion.
Yes, and you have contributed some yourself.
...right and wrong types who think life is simple and that drawing a line in the sand is easy. Well, not always.
That is only true for those without the character to enforce the rules. Who are you, as an employee, to decide which rules you will obey, and which you won't? Anybody with the slightest bit of management experience will tell you that people who will do that, will also very likely be fired at the first opportunity.
Aviation is, in most cases, extremely black and white. All the rules, minima, MELs etc are there to make your life simple - if you choose to obey them. There are still a few judgement calls, but not very many.
Whether or not you take passengers in the lavs doesn't even begin to qualify as a judgement call. The rule is clear, everybody concerned knows what it is, and if you choose to break it - especially these days - you deserve all you get.
Unfortunately, many captains choose to turn what should be simple yes/no decisions, into judgement calls. I have done the same, more than once. As I look back over my career, I am really very lucky to have never been caught out. I am a little more disciplined these days.