"Squared" - Nope, 50% is all you get on the quiz, you cannot log the time in the second scenario. Hope you didn't ever do this or YOUR logs are "full" of bogus time. And not all of the time I spent with two other pilots in the airplane was in twins, so your argument of my multi time prior to getting a non-CFI job is pointless, as are most of your other remarks. And don't tell me what to do regarding reading or anything else, I have supported my argument with references, so I see no reason for you to whale away. I sure hope you logged "safety time" accurately too, remember it's only the time the other guy is under the hood, not the time the two of you spent taxiing, etc.
Others have made comments regarding ethics and the latest is in regard to finding a loophole of sorts and that this type of time won't make you a "better pilot". Gheez, amazing stuff, all emotional responses. Look folk, if it is legal at the time you do it (and it is because I have an offical letter from FAA HQ that I can dig up if you like) then it's ethical. The regs are there in part to eliminate unethical behavior, aren't they? Sorry, my benchmark for "ethical" behavior will be the regs, not the opinions represented here or by other pilots who may not have utilized that approach to training. And who said anything about it making you a "better pilot"? It was utilized as a tool to help others become better pilots, at least the way I did it.
As for opinions from a FSDO, please, I hope you don't buy into that argument. Show me a FSDO that says you cannot do this and I will show you one who says you can. Also, there is nothing that says you have to be seated at a pilot's station to log flight time, so forget that argument. Comparisons to flying in the back of an airliner, oh gheez, I won't even go there, MONUMENTALLY absurd to compare the two.
So that's it folks, count me out. I originally made a post to help, not to get a barrage of negative commentary. I did log time this way, though not a lot of it. Per the letter I have from the FAA, it's legal and that's enough for me WRT to "ethics". YMMV.
TexanAviator and others, good luck.