In terms of reaction times and oscillations / noise, if your pass element was a simple transistor/FET eg an MJL3281A/MJL1302A or FETs like the IRF9540, all of which react in a given time, there are no sub-circuits lurking in there to generate delays, oscillations or whatever. Grounding the pin of the voltage controller will bring the output low, but what are the characteristics? I think it would be much simpler to use a simple transistor driven by an op-amp rather than a linear voltage regulator which does not have an adjustable current limit ability and you have to "hack" its ADJ pin to implement the current limiting. I know it is very common method and I have used it too, an LM317 and a BC327 grounding the ADJ pin if needed.
In terms of protection my bench PSUs have a diode (Schottky 20A) at the output, so if you plug in a large battery (or similar) nothing bad will happen. Actually the PSU resembles a battery charger which also has a diode at the output (mine do anyway). Sure there are a couple of Watts wasted there, but the PSU is almost indestructible. The voltage drop on the diode is of no consequence since the voltage is sampled in two separate places past the diode.