Westy,
OK, so in my scenario this would be perfectly legal in Germany, provided the instructor in question holds a JAA FI (PPL or otherwise). This would make him legal from a German point of view and the BFR/training (whatever it then is) would of course be legal from an FAA point of view, as he holds the FAA CPL/CFI. Correct ?
To keep splitting hair, one could argue that he's not instructing to any JAA license (as the BFR is irrelevant for this), so again: is this instruction/training ?? Guess at the end of the day it comes down to an insurance thing.
Would still be interested to hear from some FI in the US as to BFR being training or not.
And no, I won't go into the European thing
