I think the problem with the decision was that a normal 2 engine TOD would have been say 3 x Alt in thousands. Once on one engine, that TOD pulls forward when you consider a second failure, to something like 2 x Alt in thousands. So a 2 eng TOD becomes a long drag on one engine, then the destination becomes unachievable if at any time the second engine fails from TOD, even single engine TOD, and that was what hung the pilot involved. The difference could be 40 miles or more. It is accepted practice in simulator training that on one engine, you do not rush, but you do try and get it on the ground without undue delay.
The simulator scenario MAY be appropriate if you know or suspect the cause of the first failure to be something that may also affect the second engine (fuel contamination, volcanic ash...). However, 40 miles at cruise speed equates to about 5 minutes. It might take that much longer to find all the appropriate approach plates and get the ATC coordination for the diversion!
Again, the Captain must assess the situation and make a reasoned decision. It's not quite as simple as haughtney seems to think.