Well there is a point isn't there, if he says there's no current when there is?
You would not be putting 500V across the equipment if line and neutral are connected together!! I did 175 domestic PIR's a few years ago, used test 2 at 500V every time, with EVERYTHING plugged in. If I had broken something I'm pretty damn sure I would have known before I left the house. This is why we use the 2nd test in periodic situations.... I would happily stand there in front of you and megger my own house at 500V that way with computers plugged in all over the place just to prove a point.