I'm second guessing myself now, V/S should also give you climb thrust and annoyingly you've quoted me so I can't even correct myself! I'll try to find an FCOM later...
For engine fire/severe damage/separation you'd turn the AT arm switch off as a memory item and thus get TO power all the way to flaps up. Some operators use this checklist for engine failure with flap out, others have no memory items and leave the AT armed until the QRH comes out. In either case I think the 0-200fpm is to prioritise acceleration over climb.