Thanks for the input.
Please see the original post on a forum in NZ:
A question for Examiners, Instructors, Pilots & anyone else...... - New Zealand Flightsim Forums
It's interesting to note that 'generally' the instructors and examiners on this forum (PPRuNe), mainly UK based by the look of it, seem to disagree with the practice of "creating situations to try and fail people".
There's certainly no right or wrong answer - I suppose it depends on ones personality as much as anything. I'll maintain that personally I think it's poor practice - if a PPL candidate does something stupid, dangerous or illegal i.e. inadvertently entering CAS because they're unaware of their position, then sure they fail, but to purposefully set out with failure in mind and try and trick, catch out (however you want to word it) the candidate so you CAN fail them is a counter productive mind set and practice - IMO.