I think you can't win. A gyro in damping mode makes the movements slower but still you can't see them far away. In lock mode, it's the same like a helicopter's tail gyro: there will be no yaw but you have to work the rudder for turns now, and you can't do that far away either. Besides, there may well be a roll to the dead engine because there is less lift there so a roll gyro is advisable. A three-axis gyro would also counter pitching effects I may forget right now.

Not to let you down - your mileage may vary. I tried a gyro system in my Sr. Telemaster and had just these problems, and I strongly disliked flying in lock mode (though I do it easily with helicopters, but at close range). But you could set the gyro system to off in normal flight and activate it if and when you realize that the airplane behaves strangely. A dedicated rescue function (activated by a pushbutton on the transmitter) is standard for helicopters nowadays but I don't know of an airplane gyro system with rescue function yet (requires not only 3 rotation sensors but also 3 acceleration sensors).