Slam00000:
You wrote "The shear strain doesn’t cause the material to contract. It just leads to distortion. It is volumetric strain which causes the material to contract."
I think you are just playing word games here. Strictly speaking, it is the shear strain that causes the distortion of the soil structure that softens the structure, allowing the normal stress to cause the contraction in drained shearing, or shedding of the confining pressure onto the pore water causing increased pore-water pressure, in undrained shearing. So, yes, it is true that the shear strain only causes the distortion, but the end result is either contraction or excess pore pressure resulting from the contractive tendency of the disrupted soil structure. One can quite reasonably speak of excess u caused by shear strain in a contractive material, or by changes in q – the two go together.
The answer to the question is 'either one,' and I don't really understand why you ask it. The need to account for excess pore pressure from shear strain (or if you prefer, from changes in q) exists in loose or low-OCR soils whether the material is plastic or not, whether there is an instability line or not. In either plastic or nonplastic materials, there can be pore pressure increase due to change in q long before the effective stress path hits the effective-stress Mohr-Coulomb strength envelope, which is apparently what you mean when you use the term 'failure line.' You see that frequently in tx and DSS tests on low-OCR clays and silts, when the effective stress path starts to veer off to the left before q even gets very large. The main difference is that plastic materials generally do not display an instability line like loose sands sometimes do. From your previous descriptions, I could not tell whether you were accounting for the excess pore pressure that results from changing q (or from shear strain), and whether you were applying the pore-pressure conditions from consolidation analysis with the EFFECTIVE-STRESS strength envelope, rather than to an UNDRAINED strength envelope. (The latter is the SHANSEP way; the former would be acceptable if the material is not contractive.)
It is irrelevant to the shear-strength principles whether you use 1d or 2d consolidation analysis. The only difference is how quickly the excess u (that part resulting from the change in p) dissipates. For Ladd's tailings dam (low PI in slimes), they used a combination of 1d large-strain consolidation analysis (with parameters of the slimes adjusted slightly to help match field data in the pond, away from the shell) and piezometers under the shell to estimate the pressure contours shown – data beat theory! (These were used to determine the effective-stress conditions at the base of each slice to apply with the undrained strength envelope for the stability analysis).
A tailings dam has to be "robust," in the sense of being able to withstand small disturbances that could push the material to a collapse state even if just locally, such as minor earthquake, erosion by storm runoff or misdirected spigots, excavation of a road into the shell, changes in raise rate, etc. Flattening slopes is much less expensive than cleaning up after a failure. (Even if the collapse state occurs only locally, the shear load can be "shed" onto other areas, which then reach collapse state, which then shed their load...) For this reason, it is important to show that the structure is at least marginally stable with strengths at higher strains (post-peak, steady state, or whatever), unless you have a very generous factor of safety with respect to the undrained peak strength (so that disturbances cannot push the material past the peak into strain softening, and possibly to the instability state for materials that have one). I heard Steve Poulos make this point some years ago at a conference on tailings and hydraulic fills, and I agree with him, in principle if not in all the specifics of determining the strength. It is not at all unreasonable for a regulatory agency to require you to show FS slightly greater than 1 assuming steady-state strengths for materials with instability lines. (Since the strain that would constitute “failure” in a tailings dam is quite large [not just 1 or 2 percent], one may be able to take advantage of phase transformation and strength recovery after instability. Also, there may be some advantage for the undrained strength from anisotropic consolidation – see Duncan, Wright, and Wong’s analysis for rapid-drawdown stability in the HB Seed memorial volume for explanation.)
You may now consider me to be "non associative." I’ve said about all I’m going to about this.