And like you say, it's part of training. When the guy lost it, he was supposed to be straight and level, not on an approach. His airspeed gage indicated 300+, that should have been a clue.
No sympathy for this schmuck... I feel sorry for the pax that trusted him, and the companies that have their reputation smeared to give him an undeserved, posthumous social promotion and give the widow a warm fuzzy.
d.o.l.
Criminal Number 18F
If he still had the DG, you're right, there's no excuse since you can fly on the DG and altimeter without too much skill. On the other hand, sometimes the AI goes and you may not realize it, and believe in it 'til it's too late.
For the non-aviators out there, use of an attitude indicator not located in the center of the pilot's control panel is very apt to cause a bad case of vertigo. Depending on the pilot's experience level, and the lateral stability of the aircraft (the tendency to of the airplane to stay wings level) this can be a big problem.
It is even possible in some instances for pilots who are experiencing vertigo to input the opposite control inputs of what they want to do.