I recently completed my hour long revalidation check with an instructor. I asked him (once he had signed me off) what his procedure would have been if my flying standard was not up to his expectations. His reply (which I thought was quite fair) was that he would have entered the hour as DUAL and suggested another date for the check in the near future. Can't get fairer than that really.
I must also say that it was a very useful hour and I can see why it has been brought into force.