Earlier quoted context omitted.
When your engine catches on fire/blows apart on takeoff you want to cut fuel as fast as possible.
Proposed algorithm: If the flight computer thinks the engine looks "normal", then blare an alarm for x seconds before cutting the fuel. I wonder if there have been cases where a pilot had to cut fuel before the computer could detect anything abnormal? I do realize that defining "abnormal" is the hardest part of this algorithm.
In safety-critical engineering, you generally either automate things fully (i.e. to exceed human capabilities in all situations, not just most), or you keep them manual. Half-measures of automation kill people.