Who loses their ticket if you build and "fly" experimental garbage? If the answer is "no one," then that's a problem IMO.
Considering about half of Lancair IV accidents kill the occupants, that's better enforcement than even the FAA can manage.
The experimental category exists to allow people to, well, experiment. The FAA knows this can have dire consequences. There are three potential outcomes of a "failed" experiment:
1. Experimental components fail, no one is injured.
2. Experimental components fail, occupants are injured or killed
3. Experimental components fail, persons on the ground are killed or injured
#1 describes the Patey case. Doubt the FAA will care.
#2 describes the more-typical Lancair IV accident. Situation is self-governing; the aircraft is probably damaged too badly to ever fly again.
#3 is what the FAA wants to avoid at all costs. In reality, the occupants of the aircraft are usually killed in these cases, so the FAA doesn't really have someone to come after. In these cases, personal injury lawsuits by the persons on the ground are likely to be a large impediment.
Instead of installing that (shudder) "unserviceable" engine, Patey would have been perfectly within his rights to drive a Corvette into his hangar and install its engine into his Lancair. Any person with an EAB has to make the decision as to whether mechanical actions they take impose an acceptable level or risk...but, of course, the "acceptable" aspect is from the owner's POV, not the FAA's. No one wants the FAA poking its nose into day-to-day homebuilt maintenance decisions, but there are people who look on their homebuilts with very rose-colored glasses....
About 25% of all homebuilt accidents are due to mechanical issues (some driven by builder or maintainer error) vs. about 7% of Cessna 172 accidents. Yes, there are more risks in flying a homebuilt. With Patey flying the airplane to the museum for (supposedly) non-flying display, he bet there was another ~10 hours left in that non-serviceable engine. Not a bad bet. Just didn't come true this time.
Ron Wanttaja