The pilot of the other aircraft was surprised that I had not stopped to wipe the oil off our windscreen. He was even more surprised that I hadn't noticed a large puddle of oil under his aircraft and informed ATC that he had a problem. (He told me that he was listening on frequency, but not transmitting as he was, understandably, more concerned with shutting his engine down.)
I'm not an instructor (wannabee) but, as others have already said, your actions seem to be appropriate in concerning yourself with the task at hand.
What I can't help but notice from what you've written above is a certain amount of responsibility shifting on the part of the other guy.