They still are, as I understand, outside the EU. thus, they are not part of Britain, not part of the UK, not part of the EU, and obviously not part of England, let alone Scotland, Wales or Ireland!
I met one of their politicians by pure chance on the steam trai from Port Erin a few years ago, and he gave the impression of a very proud and independent people. To our ears, it sounds odd coming from people with what to us is just another "English" accent!
I was there as a teenager when their centenary was taking place, and Nos. 4 "Loch", 10, 11, 12 and 13 were in action at the time. The old company was still running the railway but was trading under the embarrassingly ghastly name of the "Isle of Man Victorian Steam Railway"... with a souvenir "shoppe" or something like that... St. Johns Junction was still intact with carriages all parked up in sidings but weeds beginning to take over the track.
In terms of the birch, I do sometimes think that if this could be applied to some anti-social elements here from time to time, and to hell with their "dignity" or "rights", maybe, just maybe the world would be calmer....
In that year, we travelled to Ramsey as well, and the track and station were intact there too. The four wheeled crane was in a siding - this, I believe, is the crane now cosmetically restored and on display at the erstwhile Union Mills station. A truly fascinating system.