Currency limitations applied by schools are always a moot point. From a legislation perspective things are very clear - "90 day passenger rule". Personally, I have never seen any additional insurance stipulations although we have all heard stories of this excuse being used.
HOWEVER, I personally think that hirers need to look at this issue from the perspective of the owner. Taking the law to the extreme would you, as an owner, let someone borrow your aircraft having not flown any form of aircraft in the last 729 days (ie just short of two years)? I wouldn't.
If we accept that a line has to be drawn somewhere, in my experience I would offer that this line should be in the two-month territory. My argument behind this is that most hirers who are only flying on a once every 8 week basis are probably not high time individuals and they will suffer from skill fade. Of course there will be exceptions to the rules and there has to be a 'CFI's discretion' mechanism in the club/school rules; the basic rule has to cater for the lowest common denominator.
As for all the other nonsense - you are a customer, you feed Guy-Behind-The-Desk's kids and if he chooses to deal with you in such a manner he needs to understand that caviar is off tonight's menu.