I figured this would come out. Even when this first happened, when I'd heard that he was coming from the boat, my own personal first thought was "what about KNZY or even KNUC..both standard diverts from the boat." Just a thought, as I wasn't there. But even so; if one of those can't be made from a blue-water divert, then the plane goes into the drink as opposed to on land; ATC offered the visual to 36 at NZY. Don't know why the different call was made in this case. Again, I wasn't there.
However there is precedence for this type of situation. In October 1987, a USAF A-7D Corsair had an engine failure, with a divert into a populated area for an ASR letdown into Indianapolis. The jet ended up too high over the field upon breaking out and the pilot attempted to circle to land on another runway. Out of speed, altitude, and options, he pointed the plane as best he could out of populated area (not much available) and ejected. The jet went into the lobby of the airport Ramada Inn killing 9 people.
Conversely, another USAF A-7D accident in July 1978 occurred after another engine failure while on approach to DMAFB, Tucson over the center of the city on a straight-in. Pilot glided the plane down to a line up with a street in between a elementary school and the University of Arizona campus and punched out at the last minute. The jet impacted the street right where he pointed it, missing the schools, but hitting a car that had pulled out in front of the jet while trying to turn onto that street, killing the two women inside.
Two separate incidents, one avoidable, one not.
The USMC had already avoided the bullet once when they put an AV-8B Harrier with an engine emergency and 4 Mk-82 live heavyweights into a house short of RW 21L at Yuma MCAS in June 2005, luckily resulting in no fatalities.
It's a dangerous business.