In fact, it being normal almost certainly contributed to the scale of this accident, since a single engine failure during the takeoff roll isn't considered enough of an emergency to reject the takeoff at high speed (past a certain speed, you only abort if the aircraft is literally unflyable - for everything else, you take the aircraft & emergency into the air and figure it out there). The crew wouldn't have had any way to know that one of their engines had not simply failed, but was straight-up gone with their wing on fire to boot.
I don't know about the MD-11 itself, but other aircraft from that time period have sensors to detect and report overheat and fire in various parts of the aircraft, including engines and wings.
There's also a very big difference between "Engine failure: something has damaged or jammed enough components that the turbines are no longer spinning fast enough to produce thrust or drive the generators" and "Engine failure: the engine is no longer attached to the aircraft, which is why it is no longer producing thrust". However, both things are reported in the cockpit as ENG FAIL.
(Un)fortunately, cockpit warnings prioritise the what (so to speak) and not the how or why. On one hand, this makes decision-making a lot simpler for the crew, but on the other...well, in rare cases the lack of insight can exacerbate a disaster. Depending on when exactly the engine gave out, this poor crew might have been doomed either way, but they might have been able to minimise collateral damage if they knew just how badly crippled the aircraft was. And there was a very similar accident to this one (actually involving the predecessor of the MD-11, the DC-10), American Airlines 191 - one of the engines detached from the aircraft, damaging the leading edge of its wing in the process, causing that wing to stall when the crew slowed down below the stall speed of the damaged wing in a bid to climb. If they could have somehow known about the damage, the accident might have been avoided entirely as the crew might have known to keep their speed up.
What is the difference?
Edit: and damage to other engines, possibly engine #2 in the tail ingesting debris in this instance.
and
"I can't walk because I have no legs"
The engine coming completely off tore through hydraulic lines, which were need to keep the slats extended. Airflow forced the slats to retract.
Here's what then happened:
> As the aircraft had reached V1, the crew was committed to takeoff, so they followed standard procedures for an engine-out situation. This procedure is to climb at the takeoff safety airspeed (V2) and attitude (angle), as directed by the flight director. The partial electrical power failure, produced by the separation of the left engine, meant that neither the stall warning nor the slat retraction indicator was operative. Therefore, the crew did not know that the slats on the left wing were retracting. This retraction significantly raised the stall speed of the left wing. Thus, flying at the takeoff safety airspeed caused the left wing to stall while the right wing was still producing lift, so the aircraft banked sharply and uncontrollably to the left. Simulator recreations after the accident determined that "had the pilot maintained excess airspeed the accident may not have occurred.
Wanting to be in the air vs wanting to over-run the end of the runway.
In emergencies, information overload tends to make things worse, not better.
Now... not sure how much that is helpful in this kind of emergency, they really didn't have time to do much.
The notification in the cockpit is likely nothing more than "ENG 2 FIRE" or similar. That could mean anything from "the fire is minor enough and we're at high enough speed that it's significantly safer to take off and then make an emergency landing", to "the engine has exploded and the wing is on fire and catastrophically damaged, so even though aborting takeoff now is dangerous and will likely cause us to overrun the runway, trying to continue would be worse".
It's a judgment call by the pilot to guess which of these is the case (or any possibility in between), and given the probabilities of various failure modes, I think it's fair for a pilot to assume it's something closer to the former than the latter.
There are two fire detection loops for each engine.[1] Even if both fails (because they get shredded as you say it) the system will report an engine fire if the two loops fail within 5s of each other. (Or FIRE DET (1,2,3,or APU) FAIL, if they got shredded with more than 5s in between without any fire indications in between.)
The detection logic is implemented directly below the cockpit. So that unlikely to have shredded at the same time. But even if the detection logic would have died that would also result in a fire alarm. (as we learned from the March 31, 2002 Charlotte incident.)[2]
In other words it is a very reliable system.
1: page 393 https://randomflightdatabase.fr/Documents/Manuel%20Aviation/...
2: https://www.fss.aero/accident-reports/dvdfiles/US/2002-03-31...