The usual sensationalist reporting. My take on it:
- Engine failure with attempted autorotation
- The helicopter was under directional control during the 'approach' - that's why they avoided the beach and the swimmers
- The helicopter was under directional control during the 'approach', aiming to ditch as close to the shore are practical - that saved their lives
- It's difficult to see, but it looks like they allowed RRPM to decay and the blades were coning up - thereby rendering the flare ineffective
Water, normally hard as concrete, might just have softened up a bit for them. While they didn't actually walk away from the scene, they made it out alive.