Please keep in mind that the Piper pilot was handed off to Newark. The only reason that would have happened is if the pilot were staying in the Class B airspace. As a previous poster pointed out, if the pilot was going to fly in the exclusion, he would have been directed to change his transponder to VFR and change frequency. This did not happen. So it appears that this pilot was planning on staying in controlled airspace. Just because the pilot indicated that he would fly down the river, does not mean he had to be in the exclusion.
Also consider that the piper pilot, if he had an engine problem, very likely had two very panicky passengers on board. As we know, this has the potential of greatly increasing the pilot's workload.
I go into the Exclusion areas upwards of three times a day. And for the most part everyone operating in them communicates their position and intentions clearly and in a timely manner.
Keeping all exterior lights on also helps. Pulse lights are bigger help.
As for changing the reg over to Euro style, we think we're the ones that got it right.