W.r.t. 'Can't say that running a fuel tank dry or the like is good practice ', to some extent I disagree and would have to ask "why not ?". E.g. in the above, all that was actually done was to close the fuel tap and allow the engine to suck out the fuel downstream of the tap; and perhaps I should have mentioned that at the time we were several thousand feet over the sea and within site of the home airport - i.e. there's also a time and a place.
I accordingly then learnt a whole stack about how the engine actually behaves when it is starved of fuel, i.e. it doesn't, and contrary to many folks impression, just stop-dead. It surges, and that in turn causes the aircraft to yaw from one side to the other, making it harder to identify just which has failed. Plus, and as you say the wind-milling prop causes manifold pressure and RPM to remain pretty much static; Of course in this instance fuel flow was the clue - but with only 100 TT, and 6 on the aeroplane, plus way too confident, hot shot here learnt some very valuable lessons that day.
Similarly now, in the simulator with a V1 cut - it's very unlikely that the engine will actually stop dead in that manner (but that's the hoop that the authorities wish us to jump through, so we do). However imho we should practise a lot more failures of the insidious kind, e.g. early on in the departure during a complex SID and / or with an engine-out emergency turn procedure (e.g. a Barkway departure off R05 at London Stansted, straight ahead on 046 degrees to 2DME then left turn inbound to BKY. During takeoff roll the bloke in back provides an intermittent PMC failure (you get some very small engine surges, nothing above N1 limit, and you put the yaw down to the 30Kt crosswind that he's also given you coming off the terminal). During the climb out the PMC intermittently fails a few more times, but again you put the subtle yaw and engine indications down to the turbulence and / or maybe the auto-throttle buggering about. Just as you commence the big left turn to BKY with the flaps coming up and the autopilot going in, your mate in the back gives you a full PMC failure plus a blocked fuel filter on #1. This causes it to start surging big time - and it is also at the same moment when he chucks in a couple of distracting TCAS alerts - yep, it all becomes quite entertaining - but you haven't had an engine failure, at least not according to the QRH), or how about the classic run-down failure during a descent with thrust levers closed - i.e. you barely notice you've had an engine failure, until you need the engines.
The problem with failures, and as mentioned in many a subsequent board of enquiry, is that they are not always as cut & dried as we'd like them to be or have seen / tried in either training or examinations, i.e. it's nearly always a sequence of insidious events that lead to the scene of an accident - so the more exposure one gets to these less than clear types of failures the safer one should become - which is why we do our stuff in the sim - now is there a sim for the C404 ?
Ultimately - Aviate, Navigate, and Communicate.