I think your arguments are that pilots who live in a state like UK can fly on FAA IR across EU. I think not. You need EASA IR and FAA IR. From 8th April 2012.
That depends on the interpretation of the 2 year derogation, and how one defines the residence of the "operator" mentioned in
(d) registered in a third country, ....., and used by a third-country operator into, within or out of the Community
which I think is the bit most applicable to private pilots
.
If you go back a bit in this thread you will find a post by bookworm which is IMHO the right way to approach it.
But the bottom line is that PROB99
none of the EU national CAAs have much idea what to do about this stupid regulation. For example what does "out of the Community" mean? Does it mean that a flight out of the EU is illegal? That is just bollox.