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Sounds like he could have saved it if he pulled in the clutch but who thinks perfectly clear in those situations? Had a similar thing happen in a Mustang. Whe were headed to Portland, OR in a friends 68 and second gear siezed to the mainshaft at 70 MPH. Ended up driving back to the nearest town in "neutral". You had to be in neutral or you were in two gears at the same time and it would kill the engine. Scary stuff when if goes like that.
Would it have been a good idea to try the clutch? Once the rear tire locks up, you are supposed to keep it that way until you stop.