I'm sure that was not intentional. Sometimes players need to look at the spirit of the rules and assume the writers just had an oversight.
The spirit of the rules is
explicitly "do what thou wilt (so long as thou hast sufficient Refresh)". I agree that it wasn't intentional, but that's bad design and needs rebalancing. There's no reason players should have to ignore it, and there's no reason why any power should ever be off-limits to players.
The one template-tied power (Greater Glamours) is also, by the way, bad design. Someone made a power they couldn't balance, and rather then fixing it by changing how it works, got lazy and left it in. These are things that should be corrected. Preferably by errata, but I won't hold my breath, so realistically by houserules.
The solution is not "well, let's just take this one random thing and slap a no-PC tag on it". That undermines the core values of the system and lessens DFRPG as a whole.
If you can modify every "race" (fae, vampire, foo dog, uh...human..etc.) why ever play the base ones at all? Why play a Fae that has a catch of iron? Why not just play a human with glamours? Why play a white court who feeds on emotions, when you cna just play a mutant who can incite lust or fear? Then you don't have to worry about True Love or Courage shutting you down or protecting people.
First of all, you don't get to ignore Catches and such by switching template. You might not be bothered by Cold Iron, but maybe Ice is a problem now. True Love might not safeguard a target, but True Self-Awareness takes it place.
Second of all, people play templates because they want to. A changeling or White Courtier can be mechanically optimal without breaking template. Sometimes that's all someone is looking for. Sometimes they want to be a faerie or a vampire, end of story. Sometimes someone wants to play a living shadow with vampiric and fae traits both. It's just about preference.
I know the narrative isn't supposed to serve a purpose in game balance, but.. it seems it does. If you step far enough from the narrative and setting there are no limits. Ergo, there is no game balance.
This is nonsense. You are limited by your Refresh, as always. You never were limited by narrative. Even if you have an especially thickheaded GM who insists you only use the templates in the book, the Scion is one of those. You may freely create your own narrative without limitation and still expect game balance.
If someone wants everythign a Foo Dog does but wants to be a person...your first instinct isn't to ask them why they don't wanna play a foo dog? I know the were form food dog works, in fact i like it but...
Because they like the mechanics of what a Foo Dog does without necessarily enjoying the narrative. Maybe they want to play a "hero"-type who can pay mental stress for bonuses and instantly raise people's awareness with a psychic equivalent of the Bark. Foo Dog powers are just powers, like any other. Broken, but not inextricable from their context.
I apply the KISS and duck principles as well as occam's razor.
Best of luck! I personally don't think DFRPG is that kind of game. I've had great success with "How can I make this fun?", even if it does involve a little extra work from time to time.