As far as diverting to Penang or Kuala Lumpur without radios and transponder, well Penang is closer, open 24 hours, very familiar to the crew and has virtually no traffic at night. And that’s what MH370 did.
But if you want to divert to Kuala Lumpur then go for it, but just remember that it’s further, and you’ll be playing chicken with a LOT of traffic. So you may make it to “home base”, but you have increased the risk of a mid air collision and ending up in an aluminium ball!
That suggests to me that you have little idea about the realities of this sort of flying, but you're welcome to your opinions. Can you imagine the subsequent interview with the Chief Pilot being asked to justify the reasons that you diverted to Penang and didn't return to KL, and then trotting out your response? I did a quick straw poll today amongst various ex-QF/SQ/MAS/CX friends (7 of them; 5 said they'd go to KL).
Can you support the Penang being "very familiar to the crew" contention?