Talk Split,
Well said, sir. But in doing so you have hit the nail on the head. At Sqn level there isn't an issue (excepting the survival of the Junglies vs RAF equivs). At a more senior, policy level, the decision was made that the RAF Merlins would be passed to the RN and in the process, if affordable, converted to Mk 4 standard (effectively what the Italians have). It is the responsibility of those above Sqn level to enact that policy and it does not matter what the Sqns think and what their feelings are about their comrades in arms.
The deliverable required is embarked maritime effect (in this case primarily for the amphibious requirement delivered by the RMs) - a joint effect delivered by the RN. And before you say "what about the Apache?" - you may recall that the original intent was to have a maritime Sqn manned by the RN...I think the system is growing back that way through force majeure.
As with other aviation capabilities it is not just about the pilots (although the RAF tend to think in this way). It is also about growing maritime aviation experienced SO2s, SO1s and above to fill a variety of posts both at sea (Wings etc) and ashore in HQs and at TASs. This is as true for the RW side as it is for the FW (hence the RN's fixation with remaining in the FW game) - I honestly cannot see RAF officers and men volunteering to spend their career in the maritime domain (including the sea time for both flying and staff appointments).
It is not a one Service vs the other issue really, it is where the output and expertise growth is needed. If one wanted to be totally hard nosed (which I was in an earlier post) the RAF have no requirement to grow rotary wing aircrew as the expertise (at all levels) is needed for Army and RN outputs/effects. On the other hand in the FW world the RN do need to be involved as they need to deliver effect from the sea (Govt policy) and operate the host platforms (including maritime FW risk management) safely and at all levels - from Able Seaman to Admiral. The RAF do need to operate FW aircraft to deliver defence of the homeland, ISTAR etc and to grow air-minded battlestaff for joint HQs etc, but they do not need to own the whole show, which is what Project Trenchard is really about.