In the past pilots would turn up to the FAA office (you could walk in at any time with non of the CAA polava before Sept. 11, although now you cannot turn up without them knowing about you). You would show your ICAO licence to an FAA warm body that had no idea what he/she was looking at. Some licences are a bit of paper, some are in a brown pleather folder, some are only issued with a valid medical, some are issued but have a separate medical etc. Well, nothing against the FAA as they should hardly have to be aware of all the different licences under ICAO and their individual requirements/laws. So what mostly happened is that they would just get you to fill out a form and then issue a restricted licence willy nilly. In fact I know someone who was issued one on an expired CAA licence!
Now they have realized the error in their ways and have put measures in to verify the reality of the licence put up for a restricted licence. It is still free, there are no flight tests and no writtens..........you just have to fill out a form on the internet and await the process. The fact that the CAA charges a fee is not the fault of the FAA, and is understandable for the additional work they have.
It could be the other way round when an FAA pilot wants to fly in the UK........have to do two writtens and a skill test as long as you have 100 hours or if not, all the bloody PPL writtens when you hold a PPL already!!!!!!!!
Trouble is, we have taken the FAA system and the ease of it for granted for so long, that as soon as they make us do a little work for something they get nothing but groans and moans!