I'm not usually a fan of any more legislation than we need, but there's a law that I need to wear my seat belt in my car, have a smoke detector in my house, and keep a trigger lock on my handgun. With the cost of a DSC equipped handheld at $200 or so, they should be required eqipment on any vessel over a certain size, or anything with an engine. The fact that people don't know how to use them, or register them should not be grounds for lowered expectations of people's responsibility to take care of themselves.
There is a trend these days to charge hikers and mountain climbers who get lost for their search and rescue if their behavior was deemed negligent. I think the Coast Guard should be doing the same thing. If you go 25 miles off shore in a 12 foot boat and need to get rescued, you should pay for that. If you take your boat out in conditions that exceed yours or your boats capability, and need to be rescued, you should pay. IF you don't have a registered DSC VHF and know how to use it, your behavior is negligent and you should bear the cost of your rescue.
Before everyone goes off on me, I'm NOT saying the captain in that story was negligent. I don't know that area, and what the VHF situation is regarding how remote it is, how far away the Coast Guard is, or what its like using a radio around so many islands with elevation that could block transmissions. That boat was a professional charter boat so I'd assume that they were properly equipped and had a knowledable captain, and there may have been a reason for using a cell phone and not knowing his location. Time will tell. I DO think its time that GPS and VHF are added to the required equipment list for vessels.