We did, too. Live, in the airplane. Got some surprising results from some of the students. For example, the E1B did not have ailerons, just un-powered spoilers. As a result, finesse was required when the airplane got upside down.
Excellent idea. A few of my students got it bad, black hole effect or distraction. My "remedy" was to let the student get deep enough into trouble to be badly frightened, take over, recover, then land and park ASAP for calming and debriefing. Short term, through the quest for a rating, it worked well. Students caught the next problem early and recovered without escalation. I have no idea about long term effectiveness, but I did my best to make the first incident unforgettable.
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