I agree that "practically" the pilot did the right thing. However "legally" you have to retain visual contact with the runway during the circle. Since (due to simulator inadequacy) this is impossible - and - in a sim check you should do everything "by the book" everyone should go around when performing this procedure in the sim.
IMHO the pilot demonstrated good airmanship and judgement. The trouble is that, for some people, boxes have to be ticked and hoops jumped through.