Apart from the link I supplied, I have also spoken to some embassies if only to ask a question I already had the answer to; you do not have to go through each countries application for work permit if you are an EU resident, if that was ever the case it no longer applies in the majority of cases - read the passage contained in the link. In the case of The Netherlands EU nationals have to apply for work permit although they are not granted with one but as you would hope are allowed to work there. This as far as I can ascertain it to keep tabs on who is living there - not such a bad idea.
The rest of your post is either misinformed or out of date, the restriction you mention regarding Rhodes no longer applies. I have never heard of local laws being implemented in contradiction to EU laws.
I would try asking your local Citizens advice, or welfare rights officer! They will tell you point blank, they can only work under local laws and not European laws. Better still pick up a phone book and try and find anyone practising European law.I have never heard of local laws being implemented in contradiction to EU laws
I went through the law society and they couldn't provide anyone in the UK to take a case up. So if you can find one let me know becuase i still have unfinished business with UK mind you i haven't searched the internet the last 6 months.