TC - I'm with you on this one, the data that Nick Lappos posted on previous threads about VRS showed that on something like an R22 you would need to have 800 - 1000 fpm RoD just to get into the boundary of VRS let alone into fully developed VRS.
If you can recover in 400 -700' you are only showing the incipient stage and recovering from it - I have done it in an R22 and 206 for 1179 checks and it is not VRS, it is just letting the aircraft shake a little bit and then recovering into forward flight.
That is not to say that the demonstration is pointless - it is exactly what you want the student to learn, immediate recovery from the incipient stages having recognised the warning signs - just don't call it full VRS 'cos it ain't.
In theory a powerful enough helo can recover from full VRS using power but R22s and the like certainly won't have that capability. Try setting up your VRS demo and then pulling to max power at the onset of vibration - chances are you will stop the RoD immediately but because you only use a small application of lever in the standard demo and have dropped off ETL you have insufficient power applied for an OGE hover and so your RoD increases.