BTW just checked with an aviation lawyer and no I am not operating illegally at present!
Of course you are legal - what you do is Part 91 ops. Non AOC. You are good till April 2014 - as things stand.
After that, you either need to collect the EASA pilot papers, or arrange a non-EU-based "operator", or maybe something will happen.
If there has to be an 'all or nothing' vote on FCL.008 as it now stands, the UK might have to vote against it, delaying the EIR, C-BM IR and SCR.
That would be really stupid.
The pilots who have the technical capability to use the EIR properly are doing just that right now, on plain PPLs, probably illegally, and certainly illegally once outside the UK.