Phil,
This information could be very interesting and useful for others.
Can you confirm that your wife was granted an extension to her FLR(M) for an additional 2 years or was she actually granted Discretionary Leave to remain, which is given outside of the rules for exceptional cases?
Did you need to pay an additional application fee and supply any English Language certificate.
This case could be a very important precedent.
Sorry in advance if I've misunderstood your post.