Anthony,
As mentioned, the threads in the VATSIM forum have covered this topic ad nauseum...there is no need to rehash it all here.
There have been (and may still be) virtual SAR operations on VATSIM - including within VATUSA airspace. To my knowledge, they have all held successful operations of one type or another and enjoyed the network without the necessity of using 121.5 or any other Emergency/Guard channel.
STOP trying to promote this as a "VATUSA is usurping VATSIM authority" discussion. If such was the case and the BoG had issue with the VATUSA regulation prohibiting the use of said channels, do you not think they would have: 1) refused the original implementation; or 2) demanded its removal (even now)? As none of these have occurred, things shall stay as they are as this best serves the community as a whole. Learn to live with it or move on.
By the way, posting in over-sized fonts does not engender greater sympathy - rather it comes across as a piteous cry for attention. Think about it...