Tweedler,
A very well written post, especially nice for a first post. Interesting, given your join date. Your scenario #1 seems very likely and VERY familiar, let's see if you get flamed like I did. lol
On the other hand,,,
Let's, for arguement sake suppose that the falling object is a T/E flap: Well, we're back to good climb angle and all engines producing thrust. Lower the nose and accelerate,, speed is options, speed is life. Speed is more aileron, speed is more rudder. A total assymetric flap on one pair is no life threatening deal in a 707,, given enough speed.
Granted,, we never practised flap assymetric take offs.
My money is still on a slow speed turn into a dead engine.
--Heracles