For those of you who have never been to Milford Sound try Google Images. That will give you a small insight on the terrain but you would be still in awe if you ever get to go there.
Be assured that if anything were to go wrong, and you had to auto rotate to a landing, then you would be going to the sea. And the near vertical sides, 1000's of feet high, are nearly as deep below the sea. There is nothing like this in the UK, nothing in Scotland comes near, so perhaps Crab could be forgiven in not understanding the nature of helicopter operations in this sort of area.
And for speculation? I would speculate that if a good autorotational landing was carried out onto the water, impact minimalised, and the helicopter then sank hundreds of feet a beacon would not necessarily go off anyway.
I do not know the individual or company involved. I am not from there so have no vested interest in this event. However if it were me that had been put in these circumstances and somebody was to question my intergrity on a public forum in the manner of Crab I would be annoyed to say the least.