It may be that your local PSB were being over-zealous, but the idea that your wife could take the medical instead of you seems absurd and a strange interpretation of the rules.

About my wife doing the med instead of me, they backtracked on that when she asked them to confirm that. They said there had been a 'misunderstanding', but I'm sure if I'd followed their foolish suggestion, her med would have been rejected, and I'd have been in big trouble.
The situation at the moment is as follows. On Monday I must go to the PSB with a photocopy of the house contract + the results of my med. It's possible that I'll get my RP there and then. If not, I'll have to return after a few days to collect it.
Yesterday the local police called my wife at work to ask if I was at home. I presume that the PSB hsd been in contact with them!
My past experiences with local police have indicated to me there is a weak link there as far as the PSB is concerned. Oftentimes the local police do not assist the PSB in determining whether a foreigner is residing where he's supposed to be or not. As I'm retired and in my flat, there's no way I can be done for breaking my RP conditions.