FD, Shaun was talking about a light helicopter with floats on in his example of negative dihedral - a situation where the amount of drag caused by the fuselage is much more than normal and the CofG is unusually high. I agreed with him completely in this situation (I've even bought his book!) I think he would agree that most helicopters do not display this effect and instead display positive dihedral EFFECT (ie the same as a fixed wing would despite the fact helicopters don't have wings).
It is the positive dihedral EFFECT that makes the helicopter roll in the opposite direction to the sideslip (therefore in the same direction as the yaw).
As for the boll*cks you wrote about ruddering around to pick up a wing - you were the one who said this was dihedral effect, not me!
Ask Ray Prouty if helicopters exhibit positive dihedral effect and I think you will get an affirmative answer (I've got his books too!!!)
PS My analogy using a crosswind hover was accurate because it highlighted the error in your argument that a sideslip produced a roll in the same direction. A crosswind hover is only an extreme sideslip.