Okay let's pretend I said lots of them instead of most of them. What does that change? The rules for .eu aren't anything out of the ordinary. Australia has exactly the same requirements IIRC. .uk also requires a local contact.
The rules allow EEA members that are not part of the EU , like norway, to use .eu. Given that there are so many british domains registered it seems like breaking them is the wrong approach - a simple change in the rules would do it.