How can I configure the workflow so that when the deadline is missed the workflow step is simply skipped?

This is tricky to explain but easy to implement once you know how.

Follow these steps (in later releases there is a wizard which takes you through the steps):

1. In the terminating events view of the workflow step activate the "obsolete" event and give it a name.

2. Specify a deadline period for the step.

3. Specify a name for the event. This adds new branch from the step.

4. Add a new step to the deadline path. This step must be of type "process control".

5. Select the control "Make step obsolete" and use the search help to specify the workflow step that has the deadline. Only steps with obsolete paths defined will be displayed (see step 1).