He chooses the latter and touches down 1000 metres in from the landing threshold
Got away with it today, but that isn't the planned touchdown point.
The simulator instructor gives him a FAIL because in the instructors opinion the pilot should have gone around again because he was too high to be stable by 500 ft.
You can understand why.
The basic cause of the high approach was the lack of simulator visual fidelity in the first place placing the pilot in an invidious position where to play the game the base and final turn was made using instrument flying and navigation displays instead of visual flying.
Simulators are less than perfect in this regard, most people would acknowledge that. However they let you walk away unscathed whatever decision you make. The real world is often much less forgiving. If you find yourself high or fast or both in either domain and for whatever reason, it is the choices that you make that matter. This illustrated choice when it was felt
the pilot was in an "invidious position" was to press on with an obviously high approach that gave him a touchdown point three times further from the threshold than it should have been.
What the pilot did (according to you) was to conduct a "stable" approach on an incorrect profile to a grossly incorrect touchdown point and judged it to be
Ok because on this occaission the runway was long enough to accomodate the poorly executed approach.
If you had been the instructor/examiner what would you have done?