Stop it right there! It is not allowed to transition from LNAV to LOC without going through Hdg! No more 'advice' please for those doing this in real life! It is also unreal. Maybe in development it all looks good doing that, but in real life.....never! Little things like ATC intervene, and actually flying a real aeroplane on the day, not a perfect simulated creation. You must not give piloting advice when you are not even a pilot!
What are you smoking? On the NG there are NO rules saying you can't LNAV onto a LOC. If you do a full STAR, that is exactly what you would do. Come out of the closet, you are a FS hard core who gets off on telling everybody how much "knowledge" you have.
The 737 NG is a good aircraft, but it does have it's flaws. Warning systems are not up to modern standards. Helios and cabin altitude warning springs to mind. Being modified as we speak.
Stall warning is, lets say, adequate? A stick shaker, and that's it. BRRRRRRR! No voice, no lights. No real protection against stall except for stick pressure when you fly in manual. Not really working if you slide down the GS with the A/T disconnected. No auto retract of speedbrakes if you react to a GPWS TERRAIN and try to pull up (AA in South America, 757, but reacts the same).
What protection do you have if you end up high on final and decide to disconnect the autopilot and autothrottle, dive down (in IMC) and fly right throught the GS only to find yourself heading fast into the ground when you break out of the clouds, followed by a OJOJOJ and a quick pull up (in idle because you are new to this aircraft and now have both hands on the yoke pulling and forgot the A/T), rapid loss of airspeed and a subsequent stall and some more OJOJOJ, some thrust and "game over". Turbulence for the SLF's could easily be a badly flown approach?
But we don't really know who was at the controls, and training captains are gods (all except a few that I know of), so this scenario is just something from my imagination. My disclaimer, so to speak.
In all fairness, it's possible to fly an Airbus into the ground without much hassle. GF BAH.