I've never been near a 95.10 machine, let alone flown one, owned one, or built one, so I'm happy to be corrected about any part of 95.10. However, 95.10 or 95.25 is what most of the public thinks of when they hear 'ultralights'.
I've only ever flown with one RAA non-senior instructor, and he said that he was finding some parts of the PPL theory difficult. You may disagree about the amount of regulation; but my position is that someone who finds the PPL theory too difficult to pass doesn't really have a place in explaining aerodynamics, or stall/spin, etc, to a new student. The impost on a new instructor having to do the PPL theory is minimal - there are plenty of pilots who have done it! Loading charts aren't covered in the RAA BAK exam, so how does a basic instructor prove that she understands it?
If we're going to train to the GA syllabus (and claim that our training is equivalent), then our instructors should have passed the theory for the GA syllabus. This is doubly true if we want 1500kg (which, IMHO, is a mistake).