Alex,
We both know that if the failure occurs after V1, the engine-out flight-path is theoretically invalid. However, since your performance will now be somewhat above and beyond what the V1-cut required, there is nothing wrong with following your ETP, albeit with a little more than the 35 or 50 ft. obstacle clearance
The tricky part comes when the engine cuts after your SID has deviated significantly from the ETP, but you're still below MSA. And in that case, yes, you have to stick it out with the SID, unless your local knowledge makes re-joining the ETP a rather attractive option
OD - forgot to ask - are we talking departure or arrival? Or just airwork in general?