A little background: I have 7000 hours, mostly as PIC in small, old freighters in the US. Never flown glass, (mostly didn't even have an A/P) but I have jump-seated in several glass cockpits. Never flown in Europe, but I have been into many of America's primary international airports. My company offered PFT, so I have flown with many very green FOs. The end result of that experience is that I can hand-fly very easily, and still deal with all the normal (and abnormal) events common to the job.
My take on the fear factor is that anyone is going to be a bit scared of something new. (except the guy who is too dumb or over-confident to be scared) The solution to the problem is practice and experience. If the FO is nervous hand-flying, or watching the Captain hand-fly, that's OK; keep doing it, and he'll get good at it. The fact of the matter is that everyone has to start somewhere; all FOs have that first day on the job, of course they're going to be nervous. That's not to say there aren't some issues with the industry's hiring practices, but that's something for a different thread. Now if the Captain is nervous, that's a much bigger problem, but the cure is the same. Although I've never flown glass, I fully agree with the comment that both hand-flying and the monitoring there-of is usually easier. Tell your scared FO that, and watch his jaw drop.
In a perfect world, we would all have 10,000 hours and 1000 hand-flown instrument approaches before carrying pax for hire, but since we don't live that long, and many countries simply don't have enough GA or military pilots, we have to make do. That leads to, essentially, training during revenue flights. Assuming the newbie gets some quality sim training, and the captain is reasonably proficient, and they all know enough to use the automatics when things get dicey, then the FO can learn to fly on the job with a fair degree of safety. When one of those assumptions fails, then you have Lion Air.
On the plus side, at least Lion Air is apparently encouraging hand flying!
