Jim,
In your quote of the JAA PPL privileges in the ANO you have started at para 3, it is para 2 where the FCL1.175 restriction is mentioned - in the ANO. (I should have been clearer, there is no wording on the licence itself re. 1.175 it is in the ANO).
It is very sneaky the way this privilege is removed via a reference to a section of a separate document. It was only when someone else pointed the implication out that I twigged. I agree whole heartedly that the whole set of drafting is way too complex for the average person (and probably too complex for the regulator as well!)
Babybear,
You do need to get the books out. VFR doesn't require you to be able to navigate by looking at features on the ground. It is primarily about the flight rules when in sufficiently good visibility for see and avoid and visual terrain separation to work (if you are 1000 ft above the clouds you wont hit the ground and have a chance to see anyone climbing up through the clouds (they would of course be IFR))