Winguru,
You are mistaken. There are lots of N-reg aircraft in Europe that Europeans have paid for. However, they don't own the aircraft. Most of these are owned by a US Citizen Trust - this is a legal entity that is in fact a US Citizen (however it is not a real single individual). The Trust has a person (or persons) who are the Trustees and these people own the aircraft for the benefit of someone else (the European who you think owns the N-reg at your local airport). It is a bit of an odd concept to not actually 'own' your aircraft, but it works.
The key thing from your perspective is there is a US Citizen real person who owns your aircraft (the Trustee) and if you kill someone he is going to be sued, so you can be sure he will require you to fully indemnify him against this exposure and will want you to have proper insurance. So there will be none of this 'I'll be dead so it doesn't matter if I have no insurance' logic.
I would strongly recommend you don't try and short cut the system. There is a well defined right way to do this.