Respectfully, Mike, it only takes a small amount of overpressure and overexpansion to damage the lungs.
Even though you're correct that the 2nd stage exhaust valve could vent some of that free-flowing air, overpressure (overexpansion) of the lungs would still be a major risk with one's mouth wrapped around the mouthpiece.
We could be talking about a significantly greater amount of air and pressure if it's due to a 1st stage failure, than a simple 2nd stage failure.
My guess is that both types of free-flows could overwhelm the exhaust valve's capacity.
Not that my 10-year-old PADI OW manual is the final word, but they state, on p. 155, (with my embolden), "You can breathe from a free-flowing regulator if you follow a couple of procedures. First, don't seal your mouth on the regulator because the continuous flow of high-pressure air may cause lung-expansion injury. Instead, hold the regulator in your hand and press the mouthpiece to the outside of your lips."
Mike, I value your opinions, but surely you know that the lungs can be damaged by relatively small amounts of overpressure.
Besides, a diver, with his mouth wrapped around the free-flowing mouthpiece, even if the overpressurizing from the flow-free didn't cause outright damage by itself, would increase his risk of barotrauma if he momentarily closed his airway during ascent. That's because he may be more likely to have pressurized, full lungs.
A momentary gulp closes his airway and, if he ascends another few feet, pop goes the alveoli! If he's sipping, it would be much less likely, since his lungs would probably not be full or pressurized.
As I think you know, in shallow water, even a 4-foot change in depth has been known to cause lung overexpansion injury when breath-holding on a full breath. That's not much of a pressure change.
The possibility of lung damage, from even small amounts of overpressure, is the precise reason why "sipping" from a free-flowing regulator is recommended, I believe.
Dave C