Yikes, what else would they like to see? Fly out 60 miles to a fuel dump racetrack, spend 25 mins there and come back, does not sound too smart.
The AC is certified for an RTO with about 1000 m remaining to the stop. After an engine fails we do our thing, put all of the runway in front of the nose again, and land the ailing bird. Is that scenario any different for a heavy?
If it will take off, you can land it - my predecessors claim to bring that rule of thumb directly from Seattle - a certification requirement they said.
With a cargo smoke warning, we would be landing PDQ as the safest course of action. I do not see how a -1 engine makes that a less professional choice.
Ready to be educated, FD.