To my knowledge there is no NOTEX saying the opposite of this , given this was the 2010 FE handbook approved by the CFE!
The recommendation came from the CFE himself at a Examiner's Standardisation Meeting at Gatwick in Oct 2010!
why can't the CAA follow their own advice and issue a rating irrespective of the medical status
Where is your evidence of any such advice? The CAA have required existing National licence holders to maintain licences in accordance with JAR-FCL since Jan 2000. JAR-FCL 1.035 States:
JAR–FCL 1.035 Medical fitness
(See IEM FCL 1.035)
(a) Fitness. The holder of a medical
certificate shall be mentally and physically fit to
exercise safely the privileges of the applicable
licence.
(b) Requirement for medical certificate. In
order to apply for or to exercise the privileges of
a licence, the applicant or the holder shall hold a
medical certificate issued in accordance with the
provisions of JAR–FCL 3 (Medical) and
appropriate to the privileges of the licence
You are applying for the re-issue of a class rating which has expired and therefore, no longer exists. To do so, you must have a valid medical certificate. Nothing to do with EASA yet!
From CAP53:
Chapter 2 Medical Certificates and Declarations of Health
1 INTRODUCTION
1.1 A Private Pilot's Licence (PPL) will not be issued or renewed unless the applicant holds a valid medical certificate of the appropriate class. There are two types of certificate:
Class 3: Private Pilot's Licence (Aeroplanes and Helicopters)
Declaration of Health: Private Pilot's Licence (Microlights and Balloons)
(Class 1 and 2 Certificates apply to professional licences see CAP 54.)