I guess it's symantics: I read "what you would do in a real life engine fire situation" and assumed he meant you really were on fire.
Like lots of things, you can't always be too prescriptive to cater for every eventuality. I once did a check ride in a light SE aeroplane and was told I had "an engine fire" about 600 ft after take off. I elected to turn back with the engine running and then shut it down, working on the basis that I rather land in a pile on an airfield with RFF provisions than on an expressway/Shopping Mall parking lot! The Instructor/check-pilot took another view, and criticised me for continuing flying, and suggested the land straight ahead with the engine shutdown option was the only sensible course of action (and this was Florida with an FAA check pilot!)
As others have said, by all means spend 20 seconds or so gaining a fighting chance before shutting down, but don't start talking about 2-3 minutes, or you may not be the one making the decisions any more!
(Again, with the proviso: you know you ARE on fire!)