Correct that there is a procedure to go through to get the piece of plastic, which itself does not involve a flight review or any other form of test or training...
However... In order for them to then use their FAA (based-on §61.75) certificates they must have a current flight review, and their underlying (ICAO/European) licence and medical must be completely 100% valid, as it would need to be to act as PIC in any euro registered aircraft. So a person must have the licence on which the FAA certificate rides on the back of valid (medical, licence and class rating current) as well as meeting the FAA requirements of having a current flight review, but being excused a specific FAA medical or licence skills-test as the FAA accepts their foreign ICAO level licence.
As far as no review of airspace etc, that would be the job of the FAA CFI giving them the review, and there is a mandatory requirement to cover part 91 of the FAR's. Any CFI worth his salt should really cover the pertinent parts of pt91, and not be of the mind that the person they are reviewing might never fly in the States, and not cover US charting, airspace classifications and VFR minima.
You may like to helpfully inform anyone you know without a current flight review with the above information. As an aside, you may also be surprised how many people flying in the UK as an example don't have the foggiest clue about if their licences and class ratings are valid, and a fair amount of people are likely flying illegally, albeit through a misunderstanding of the rules and reg's for PPL/NPPL/LAPL, rather than a malicious disregard for the rules - just thought I'd mention that if you had an axe to grind against FAA. It's not so perfect here either.
The major problem, unfortunately, is that there is no real FAA oversight of what goes on in the UK, and that aspect seems to attract certain members of society who like to flaunt the rules, as they think the CAA can't touch them as they're on FAA licences and US-registered aircraft, and the FAA are too far away to notice/care what's happening... Thus giving FAA operators/pilots in general a bad name when there are occasionally a few rotten apples.
There's also a lot of jealousy about as there is some nice kit around on N-reg, and a US instrument rating is far more attainable than the EASA equivalent. So it's hard not to feel an absolute mug trying to blindly follow the EASA system if you want to fly airways around Europe, and own something nice (that you can easily upgrade avionics in, that doesn't need checking every 50 hours), when the much more attractive FAA system can give you exactly what you require.
The term these days is "flight review" not BFR.
If you've got your facts right, it would be a bit crap to think people were getting certificates issued from one of the two DPEs in the UK who are allowed to do this, and having paid an obscene amount of money for something which is free in the US at a FSDO, weren't having it explained to them exactly what the ins and outs of their new certificates were.