Ryland,
I agree with everything you've said here, except the part about "...it seems that the party used it as a false sense of security..." Until they all get down and someone (hopefully SAR/MR and not the media) interviews them about this, I wouldn't make this pronouncement. But everything else you said, yes.
I don't agree that the MLU should get praised in this incident either, but you can bet your bottom dollar that is how the media is gonna portray it. These folks are going to be made out as "heroes" for carrying them, when in reality, the best tool we as mountaineers and climbers have in our toolbox is this:
Again, I agree. No piece of gear is a substitute for competence.
Funny anecdote that doesn't really seem funny to me anymore:
I bought my first avi transciever over 15 years ago, before the rampant "product warning label" craze set in. I replaced it about 5 years ago. When I read through the replacement unit's literature, I found this: "WARNING! This product will not prevent avalanches." At the time I laughed, now I'm just tired of all the labels, period.