".... it sure does make you wonder what the engine controll was controlling on for each engine since the implication was that the engines were in a steady state condition."
No, you can't imply that from the available infomation. It's very possible the controller was trying to deliver full power by allowing max fuel to the powerplant etc etc but lousy combustion or the mechanical damage, stopped the hardware from spinning at more than 35%. Think of this analogy - what happens if one or two spark plugs fail on your car? You, as the control system, ram your foot to the floor to demand maximum power, but how fast can you go?
Well then it wouldn't be at steady state because the EGT would be going over limits