Ok I finally got some responses from Info.Schengen@vfshelpline.com.
The first response said :-
"With regards to your email attachment of the resident permit, youspouse needs to apply for the visa to visit schengen countries even ifshe is travelling along with you. She is eligible to apply under the EEA/EU national family membercategory. She needs to apply for the visa to the country where she is going tostay more number of days."
I then followed up with another email asking them to confirm that she would be entitled to a free visa on arrival. After about 2 weeks and a couple of reminders they came back and said :-
"In regards to your below query, kindly note that there is no free visa on arrival. You will have to apply for a visa before travelling to Netherlands. For Belgium, you'll have to check with the Embassy, as VFS doesn't deal with Belgium.
So, if they are correct, my wife has to have a visa and, at least as far as The Netherlands is concerned, there is no visa on arrival free or otherwise.
Personally I have decided to bite the bullet and go to London and get a visa. The whole thing is just so convoluted that it simply isn't worth the aggro and risk a rejection at the airport. Good luck to anyone that tries it.