One of my parts car Boxsters was an engine burn car and I have seen plenty more over the years on Copart and IAA. It happens. It is not rare. I do not see many scenarios where an engine compartment fire would not be considered a total loss by the insurance company, even if you have a system to extinguish it. I'm all for fire suppression as a safety measure. A good system can keep you from getting severe burns and keep more of the car salvageable. Just don't risk harm to yourself to 'save' a car that's going to be totaled anyway.
Burnt 986s
Currently on the salvage market at Copart and IAA: