I don’t know why all this cannot be simpler. Seems to me the problem is they need a line in the end that says the FAA can, upon examining the facts, decide not to enforce the rules if it does not appear there is an attempt to either make a profit or gain other value such as flight experience or notoriety or whatever.
I don’t know what I don’t know but it seems a tough a hard thing to capture in rules. So, they are making lots of rules that ought not be enforceable on their own, but only as proof someone is running an unapproved operation. But then you get the organization out looking for who is paying the fuel bills rather than looking for guys running shady charters.
The IRS is the king of this. They have arcane rules meant to be flags for catching real cheats and crooks that have taken on their own lives and now are catching small businesses that aren’t doing anything wrong. The agents then say they have to enforce because “that’s the rules”.
Somebody needs to stop this stuff. It leads to deaths. Citizens have a duty to raise up against tyranny. Non violently at first. (Looking at you Iran, China, NK…)