I think a lot of people have forgotten the aircraft was a helicopter and as such can operate at a lower VFR Day requirement. From memory class G operations for example can operate below 700' above ground or water. The minimum flight visibility is 800 meters. The minimum distance from cloud both horizontal and vertical is simply clear of cloud.
This doesn't address the VCA point, but clearly gives more leeway than you assume of a fixed wing aeroplane.
I guess there is also the matter of forward speed to ameliorate the situation to hover or land if such an area appears.
The balls, given prior history, appear to be lacking in a duty of care which I read in the summary.