A couple of questions / observations...
Firstly, the maps used on (for example the BBC) news sites seem to indicate a turn off the NE coast of Brazil, through a "gap" in the storm cells. Is this turn "real", or is it just a bad representation of a great circle route? Therefore did they actually fly through the system being mentioned? Or is the map just wrong?
Secondly, with regards to data transmission, surely we would only be looking at a couple of kb for position information, rather than tens or hundreds? Also, would it really matter about its ability to transmit / receive at every attitude / aircraft state? Surely the fact it can give a "last known position" is still better than what we have here?
As for an EPIRB or something similar, wouldn't you just put something (perhaps in the top of the tail) that would be barostatically activated (I would say on contact with water, but then there is such a thing as rain) and detach from the aircraft, float, and start transmitting?