Engine Cooling System problems of the 2004 Mercedes Benz E320

2004 E320 4matic wagon. Engine stalled while merging to I-65 sb. Vehicle was 7qt low on oil. Vehicle was not equipped with a manual dipstick to check oil. Vehicle is equipped with flexible service system that monitors oil level, conductivity, temp, pressure. Owners manual shows that if any parameters are outside normal, or in the case of sensor/system failure, a red warning would appear on instrument cluster to instruct the driver to stop the vehicle and turn off the engine. No warning was displayed. Dealership states instrument cluster failed to communicate with central computer due to a software issue. Engine must be replaced. Requested Mercedes Benz to replace engine and assign engineering team to address issue and issue a service campaign to prevent failure from happening to others. Mercedes benz stated that they will provide no assistance. I am concerned that this issue could also fail to provide other important information (brake system, airbags, engine cooling paramaters) as well. As an engineer, in my opnion, this is clearly a design flaw that needs to be addressed and should have been evaluated by a failure mode effects analysis prior to deciding to remove the manual dipstick. If instrument cluster could not communicate with central computer, it should display a warning to stop the vehicle.