I'm sure the crownie tasted good Wombat, I've had a similar experience at Broken Hill. I was taught that the crosswind thing is "demonstrated" and you do not need to head for an alternate if the crosswind is up there.
The "demonstrated" seems to me to be a function of the rudder authority for a classical sideslip type arrival, but it doesn't allow for the alternate "crab till the last minute and then get straight" type of landing. In theory you can land in just about any crosswind with this technique.
Older and bolder instructors have demonstrated to me:
(1) Taxiiing the full length of the runway with nose gear off ground.
(2) Landing with windward main wheel alone until well below stallling speed.
These appear to be good exercises in aircraft control.
To be fair, there are a number of ways to satisfy the "book" requirements.
Furthermore, where i fly from, a decent crosswind is regarded as a training bonus,