PA:
"since they were subject to the FARs at the time they definitely should have landed as we make no distiction as to the nature or inconvience of landing with a failure---- only that you are to land at the nearest suitable airport."
You have missed the point - they did the "Cannot Raise the Gear" procedure and it came up. Why would they then land at the nearest suitable?
"if it not on the approved MEL or CDL then you land---get ferry a waiver if you will---but again Land!!"
Once again you don't understand - the MEL (not sure what a CDL is but it's probably the same thing) is used on the ground to determine dispatch capability. The only time(s) you might have it out in flight would be to determine the ability to dispatch from a down-line station, or to comply with procedures specific to dispatch with an inoperative item. In flight irregularities are dealt with using emergency/abnormal drills and checklists.