Indeed it would..so much so that I'm afraid that the younger pilots of today would likely throw in the towel in desperation...what a hoot it would be to watch 'em (try) to cope....
Maybe you could try to answer my question instead of just posturing and bragging? Maybe I might then believe you that you really are a super-hero pilot.
Yaw dampers are rate/rate devices that apply rudder deflection in response to a rate of change of yaw, so would not apply any rudder deflection once the aircraft was established in its N-1 yawed or wing-down attitude. The yaw damper probably would apply some deflection at initial engine failure as it would react more quickly than the pilot - but both pilot and yaw damper would apply deflection in the same direction.
I think what you mean by claiming that "pedal forces would be excessive in the event of an outboard engine failure" is that the parallel yaw damper could prevent pilot obtaining maximum pedal deflection to maintain VMCG or VMCA. But I'm just guessing and I await your expert response.