I am still astounded every time I hear that someone is actually teaching this method. "Unrealistic" is not the right term--"crazy stupid" is much more accurate. You have a person who is OOA and almost certainly in a state of panic reaching for your regulator, so you decide that the best course of action is to fight off that attempt and try to persuade him to choose another alternative? Nothing like a good hand fight with a panicked diver to put the exclamation mark on a great dive.
I experienced an incident in a pool session with an advanced class recently that may be instructive. The student was deploying an SMB, and she had taken her regulator out of her mouth to inflate it orally. She had trouble handling it, dropped her regulator, and went into a panic in seconds. I had seen her drop her regulator and was ready for it--my regulator was at her lips immediately. She pushed it aside as she struggled to the surface, with me holding the regulator by her lips the whole way. When we debriefed, she said she had no idea I had given her a regulator. She said she remembered dropping her regulator, and she remembered being on the surface. She did not remember anything in between. This is someone who had intentionally taken the regulator out of her mouth and had only had it out for maybe 8 seconds total before panicking. How do you think it would have gone if this had been a real OW emergency, with her going for my primary while I covered it and tried to convince her to take my octo instead?
If you are in a conventional octo setup and someone reaches for the regulator in your mouth, let him have it and take your octo--you can sort it out later. If he reaches for your octo, get out of the way and let him take it. If he signals out of air without reaching, hand him your octo. Do not try to force the OOA diver to follow your training protocol instead of what he wants to do at that moment of crisis.
I, too, provide the regulator in my mouth. It is a far faster donation than handing an octo that is hanging at your side, and if he reaches for it without warning, all I have to do is duck my head after it is pulled out of my mouth to free the rest of the hose as I get my alternate below my chin.
Great post.
One other thing I don't agree the OP doing: trying to fix the regulator problem rather than commencing a controlled ascent while sharing air. Since the kid wasn't panicking, this seems to be a no-brainer to keep the problem contained.