Keith
Well, I have to disagree with you. Yes, we have to teach students to pass the exams, but must not concentrate on rote learning to the exclusion of knowledge. We don't, and our students pass just as well as any others.
I have checked our feedback, and I am fairly certain that there is only one question on this, and it says something like "after engine failure the aircraft continues in straight and level flight with wings level. What will happen to the ball and turn indicator?" This, as you can see, is a very simple question.
I admit that I was surprised to find that this is so. Our tests have examples of the second (banking) case, but these are in there to illuminate the cross connection with the JAR certification rules and the bank rate limit on Vmcl for example. Our tests have this because we teach this.
A problem with analysing feedback is that it is an imperfect science. I, personally think you are putting too much emphasis on criticism of the question bank. There are howlers, but by and large it is sensible, and the howlers are being worked out by challenge.
Dick W