CAR256
Well V1 can equal VR (and normally does in a J31, from memory) if you want to be really pedantic.
But you are absolutely right... the exercise is pointless at 500' and V2 or higher, but it is as dangerous as hell anywhere near the runway.
Before this accident, it was the habit of one LC trainer to fill the J31 up with fuel, and take the entire course along as pax. His rationale was that it was pointless to practice a V1 cut unless you were close to MAUW...