In Warwickshire, we have never previously graded our Megafinal. But we will this year, as we have all of our other tournaments.
We will probably apply a rule for the tournaments aged under 11 that x illegal moves lose, where x is a number we will consider. Above that, we will live with 1 illegal move losing. We've done that in our events this year, and we've mostly had no problems. I won't adopt the EPSCA approach, however, because I think it is unfair. If I have 10 minutes and my opponent 15, and he makes an illegal move, nothing happens. If I have 3 minutes and my opponent has 10, however, and I make an illegal move, he gets the 2 minutes. I think it'd be fairer to either never award any compensation time or always award compensation time.
The reason the rule was introduced is that when the rule was that three illegal moves lost, strong players - losing - might cheat, by playing a3-a4.5-a6 over two moves to try to gain a tempo. For strong adult players, okay. But not for a county under 8s...
The illegal move loss that irritates me most isn't the player missing that it's check. It's the player who plays a7-a8, presses the clock and says "Queen", and then loses because it's an illegal move, because he didn't personally put the Queen there. Again, it's not really appropriate for an under 8s tournament.