It sounds like a neuropsychiatric event, or an organic brain syndrome. 6-7000 ft over Katoomba would be enough. I doubt that the court will find him guilty - my suspicion is that the passenger's ageing brain, bp or glucose levels or some there combination of factors left him very sensitive to the mild hypoxia ( he may have had marginal physiology) and he may have developed quite a lot of confusion and panic as a result. His physical state may have been particular to that day and not be reproducible. Its reported he handed in his licence - I wonder what prompted that.
As he was a trained pilot he would have reacted by reaching out for certain controls . I don't know the man, but I expect that if he can't remember the event, he won't be lying.