I agree with all of you, which is why it is frustrating to be instructed to run the ENG FAIL checklist in this situation. The ENG FAIL checklist asks you "do high airframe vibrations WITh abnormal engine indications exist?". If yes, then you go to the Engine Severe Damage or Separation checklist.
The problem is, you could, at least in the sim, have 0.00% indications, which yes are abnormal, but no vibration. However, since both conditions in the conditional statement are not satisfied, the "WITH" condition is not satisfied and you remain in the ENG FAIL checklist. I think part of this is driven by the fact that thr company doesn't think crews are capable enough to run the unnanciated electronic checklist for sever damage and then go back and override the ECL for ENG FAIL.