In that Mike, I agree with you completely.
I can only recall ever once being above overcast in a permit aircraft - it was a BN2 Islander on a PtF for transit in green only, and the captain was B-N's Chief Test Pilot.
In any single engined permit aircraft - your typical PFA or BMAA aeroplane in other words (or with a pilot less than 100% competent in IMC, in that aircraft), I'd want to be flying such that there was no significant risk of descending through cloud if I had an engine failure / stuck throttle / just needed to get down and land.
In other words, if it's unsafe but legal - safety MUST be more important than legality. (Frankly, if my safest option is to fly illegally, I'll break the law too - but that's not really relevant in this case).
G