OBSERVER CRITICIZES ATC ACTIONS DURING EMER LNDG.

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AN SMA DECLARED HAVING ENG PROBLEMS 8 MI N OF EUG. I DID NOT HEAR THE PLT EXPLICITLY DECLARE AN EMER; HOWEVER; I WAS ALSO TALKING TO EUG GND AND MAY HAVE MISSED THAT. EUG TWR PROCEEDED TO HANDLE AS IF AN EMER HAD BEEN DECLARED INCLUDING ASKING THE PLT FOR FUEL AND SOULS ON BOARD; ETC. TWR CLRED THE SUBJECT ACFT TO LAND ON 34. WINDS WERE LIGHT; AND THIS CAUSED THE SMA TO HAVE TO FLY PAST THE ARPT ON A DOWNWIND. THE ACFT MISJUDGED HIS FINAL AND HAD TO RETRACT HIS GEAR IN ORDER TO MAKE THE FIELD. THE TWR WAS CALLING: 'NO GEAR; NO GEAR'. THE SMA PLT INFORMED THE TWR THAT HE COULDN'T MAKE THE FIELD WITH THE GEAR. THE PLT PUT THE GEAR DOWN ON VERY SHORT FINAL. HE LANDED ABOUT 100 FT SHORT OF RWY IN DIRT AND ROLLED OUT ONTO THE RWY; THEN OFF ON A TURNOFF; BEFORE COASTING TO A STOP. SEVERAL SAFETY PROBLEMS EXIST: 1) THE TWR SHOULD HAVE CLRED THE ACFT TO LAND ON ANY RWY. THE SLIGHT WIND WOULD NOT HAVE BEEN A FACTOR ON RWYS THIS LONG. 2) THE TWR WAS NOT AWARE THAT THE ENG HAD QUIT IN FLT -- THEY MADE A RADIO ANNOUNCEMENT WHICH INDICATED THAT THEY BELIEVED IT QUIT ON THE TAXIWAY. THE PLT SHOULD HAVE CLRLY COMMUNICATED THE ENG FAILURE WHEN IT OCCURRED. I DID NOT REALIZE THAT THE ENG HAD QUIT 'SOME DISTANCE OUT' UNTIL I SPOKE WITH THE PLT. IT WAS NOT CLR FROM HIS COMS WITH THE TWR. THIS INCIDENT ENDED WELL; WITH NO DAMAGE OR INJURY; HOWEVER; I DON'T BELIEVE THAT THE ATC FOLKS INVOLVED KNOW EVEN NOW HOW CLOSE THIS WAS TO A SERIOUS INCIDENT THAT AT THE LEAST; WOULD HAVE MEANT CLOSURE OF A MAJOR ARPT RWY. THE TWR; WHILE GETTING FUEL ON BOARD; ETC; FAILED TO ASK IF THE ENG WAS PRODUCING PWR.