Luke,
In no way do I want to discredit your experience and proficiency or that of any pilot who works outside of EASA-land.
There is a bit of a jurisdiction and reciprocity issue, though...
You have not lost your license or rating, nor will you under the new rules. Only to make a rating CURRENT again the rules have tightened somewhat. So here's a question: if you were to leave the sandpit for three years and later on decided go back, would you be able to get a local license with the ratings you hold on your EASA license without having to do training and a skill test? Or would the sandpit-CAA accept a skill test carried out by an EASA-examiner who is not an examiner under sandpit-FCL rules?
The basic idea (under any jurisdiction) has always been that you keep a rating valid, and that it expires after a year. A lot of people let their ratings expire thinking that 'they could always revalidate it with a skill test within 7 years'.
Credit for licenses, ratings and experience between different jurisdictions has always been an issue. In the days before JAA even between neighboring countries in Europe. That has now largely, but not completely, ended which goes some way in leveling the playing field in Europe.
I can understand your frustration, though.