The FAA IR -> JAA IR conversion eliminates the need for ground school residence. I have the fairly obscure reference for that somewhere.
What it doesn't do is eliminate the need (for most people) for flight training residence - because one has to do it all via an FTO.
And not just any IR FTO is convenient. Where I am based, there is an FTO which does an IR but of the people I know who started with them, all moved on fast and started living out of hotels about 70nm away. This was because the JAA examiners expect you to be doing a specific route, and this route is what is trained, and if the airport you are at is not on that route, you are for ever flying to the airport that is, and it is a big waste of time and money.