It's actually more about how individual nations interpret Part FCL. The CAA picked up on the 7 year rule, I suspect because they thought it would make them money in exams and revalidations. It's backfired and the result is that some pilots thought "sod it" and let their UK issued JAA licences lapse. Others are going to other agencies.
The crazy thing is, the guy who wrote the 7 year rule actually said that it was only intened for those piots who had no IR at all, but when it was translated from French into English, the intention was lost. And the CAA decided to interpret it thieir way when other nation's aviation authorities took it as it was intended.
The next battle is how the CAA intend to put third county's ratings on a UK issued license. We are still waiting for a reply. But while the CAA dithers, more of their revenue is transferring overseas.
The Irish AA are indeed pragmatic and in my dealings with them, I have been very impressed. They don't tell you to go away and read their idea of the regulations and make a guess, only to have them come up with a different interpretation when you make your application.