Flap,
What was the initial airspeed and GW just before the failure? Sounds like low speed and high weight.
IMHO the yaw will be very bad, and down collective is the only cure. Remember, there is no difference between down collective zero torque and autorotation, as far as an anti-torque failure is concerned. Cutting throttles is cleanup work, frankly. It is the down collective and the zero torque that does the work.
I wrote those words that you quote, and the intent is that under some circumstances, you could stabilize in a down collective descent at zero torque, and then if you were feeling frisky, you could sneak in some torque to see if the yaw could be controlled with bank. It is possible at lighter gross weights that you could steady out at 1000 fpm powered descent, and stretch your glide out considerably.
The sim sounds right, the older A sim allowed one to fly out of a tr failure in a hover - pure fiction, I think.
All my comments are based on work with the Sikorsky research simulator (a vastly more valid thing than any training simulator - but still a simulator. The day someone proposes that we blow off the TR as a test, you will see TP's flying with guns strapped to their sides!