In this particular case the fact that it is aviation standards for wire separation at issue, when those are typically stupefyingly conservative, means that "doing nothing" may well be the safest course. But I am NOT an expert in this area, so don't trust me!
One way to help make the decision is to try and get money out of the equation. If the two options are "pay for the rework" or "pay a fine equal to the cost of the rework", then any company that opts for the fine might actually believe in that approach.
I get your point, but isn't it ultimately about money anyway? If they can wire a plane correctly when they're building it, they surely can rewire a plane later - they might have to remove more stuff, worst case scenario reverting the plane to the same state it would be for an original rewire, and I suppose the reason they don't want to do that is money.
I can't understand the decision to "ship" with a potentially catastrophic failure that would cost many lives otherwise. I don't think this should be a dilemma. IMHO the two sensible options from a regulator point of view seem to be "make the plane safe to fly, and if that's expensive, tough luck" and "don't fly the plane".
But I would not trust Boeing to make that calculation and even the FAA's reputation has been dented (which is why I think they are being hard-arses about it) but it could be retrofitting is not the right choice.
I would probably be happier if the FAA and the ESA decided independently whether to allow it.
Similarly, if safety trumped all else, there would be no aviation industry.