If I am not flying IFR (see 91.167 through 91.193) and not flying SVFR (91.157) what am I flying? Gotta be VFR, unless there some sort of bizarro set of flight rules out there I am not seeing, and if I am catching clouds with the tips of my wings, that doesn't automatically convert me to being under IFR if I haven't complied with applicable parts of 91.167 - 91.193 - not to mention part 61. So, I am still flying VFR, I am just not doing so LEGALLY.
Just like going 95 miles an hour on the highway, I'm still doing it, I'm just not legal, but I'm still on the highway. So let's go back to your original statement of nobody flying VFR in the clouds. If they ARE in the clouds and they are not flying IFR, what are they doing?