To be clear I'm not arguing that the fuses aren't needed, but:
IF the O/L's had NOT been bypassed, I wonder if they would have survived as the extreme quick heating caused by the short circuits would have caused them to act and open the contactor. I know they are not intended to be short circuit protection, but in this case I'm guessing that if they were properly wired they would have possibly survived.
If the available fault current at the starters is high though, all bets are off.
I agree that IEC stuff is not as robust as NEMA...somewhere I had a guide wich compared life expectancy and max number of rated operating cycles and the IEC stuff was all short of what NEMA gear can take.