Not trying to come between you pair, but...
My experience of EFATO at about 200' supports the 'variability of ability' theory. No, I didn't freeze. I immediately adjusted nose attitude as the power failed. "Fly the aircraft" had been drilled into me. BUT beyond the instinctive reaction of maintaining airspeed, and briefly checking paddock distances, I still took a couple of valuable seconds to glance at instruments and to process what was happening. I did not stall nor did I consider turning back at that height. Never the less I was aware that in spite of thinking that I had prepared for my takeoff (prep includes some thought of EFATO options), I was somewhat sobered by the realisation that the 'Oh Sh!t Delay' had stolen time from my options. This unpredictable duration of delay is a vital part of this discussion and may be something that an individual needs to find out about themselves before attempting to set a rigid automated response to an unexpected event. I cannot blame my instructor for my reaction time. He has primed me with the knowledge to fly properly. He cannot be accountable for any human factors which may change the way that I react.
BTW, I would consider turn back if I was at a suitable height. Have practiced it at low levels in Gliders. Also, I support the view that the real killer here is loss of control, due probably to lack of currency in low level maneuvres.