stevie - I suggest you read the colour vision threads on the medical forum. It's perfectly acceptable to do a JAA CPL/IR with a CP4 medical restriction. Many people already have.
You do the night flying at night, just with the solo stuff as P1/S. So you've got the night rating, you just can't exercise it as PIC. Once you get the CPL/IR you are restricted to day only, and no public transport. I've spoken to a number of barristers who specialise in discrimination cases, and 2 of them even offered to take the case on a pro-bono basis!! That's how weak the JAA case is!
There are LOADS of people in the same boat, including a very experienced CFI I know. He's a JAA CPL/IR examiner, with thousands of hours. Whoever told you that is full of ****. If you want the fact, speak to Adrian Chorley at Gatwick, he knows the rules. It's a shame whoever you spoke to doesn't.