Argument hide/404 behavior returns a blank page, not the correct Drupal page not found page

Here's a sample view to demonstrate the problem. If you go to fail_test/sdfsf you should see either a white screen or an empty screen with only the Drupal footer information (eg. devel timings, etc.). However, if you go to fail_test/101, you should see at least a themed page of some sort.

In addition, if you then change the behavior that should be taken if an argument is not present to hide/404, and then visit fail_test (with no argument), you'll get the same white screen.

$view = new view;
$view->name = 'fail_test';
$view->description = '';
$view->tag = '';
$view->view_php = '';
$view->base_table = 'node';
$view->is_cacheable = FALSE;
$view->api_version = 2;
$view->disabled = FALSE; /* Edit this to true to make a default view disabled initially */
$handler = $view->new_display('default', 'Defaults', 'default');
$handler->override_option('arguments', array(
  'nid' => array(
    'default_action' => 'ignore',
    'style_plugin' => 'default_summary',
    'style_options' => array(),
    'wildcard' => 'all',
    'wildcard_substitution' => 'All',
    'title' => '',
    'default_argument_type' => 'fixed',
    'default_argument' => '',
    'validate_type' => 'numeric',
    'validate_fail' => 'not found',
    'break_phrase' => 0,
    'not' => 0,
    'id' => 'nid',
    'table' => 'node',
    'field' => 'nid',
    'override' => array(
      'button' => 'Override',
    ),
    'relationship' => 'none',
    'default_options_div_prefix' => '',
    'default_argument_user' => 0,
    'default_argument_fixed' => '',
    'default_argument_php' => '',
    'validate_argument_node_type' => array(
      'project_project' => 0,
      'project_release' => 0,
      'book' => 0,
      'page' => 0,
      'story' => 0,
    ),
    'validate_argument_node_access' => 0,
    'validate_argument_nid_type' => 'nid',
    'validate_argument_vocabulary' => array(
      '3' => 0,
      '5' => 0,
      '2' => 0,
      '1' => 0,
      '4' => 0,
    ),
    'validate_argument_type' => 'tid',
    'validate_argument_project_term_vocabulary' => array(
      '1' => 0,
    ),
    'validate_argument_project_term_argument_type' => 'tid',
    'validate_argument_project_term_argument_action_top_without' => 'pass',
    'validate_argument_project_term_argument_action_top_with' => 'pass',
    'validate_argument_project_term_argument_action_child' => 'pass',
    'validate_argument_php' => '',
  ),
));
$handler->override_option('access', array(
  'type' => 'none',
  'role' => array(),
  'perm' => '',
));
$handler->override_option('row_plugin', 'node');
$handler->override_option('row_options', array(
  'teaser' => 1,
  'links' => 1,
));
$handler = $view->new_display('page', 'Page', 'page_1');
$handler->override_option('path', 'fail_test');
$handler->override_option('menu', array(
  'type' => 'none',
  'title' => '',
  'weight' => 0,
));
$handler->override_option('tab_options', array(
  'type' => 'none',
  'title' => '',
  'weight' => 0,
));