Ask John Lynch.... oh, nevermind... he quit taking questions due to his high
workload.


Is this the same FAA that deemed "free" flight time to be compensation
itself if it's used to gain another certificate?

There is no "same" FAA, just ask them.


How can an instructor log flight time if he isn't flying?

That's the old "Acting as PIC" and being able to "log PIC time". Always
considered two differant things and an FAA'ism.