I've asked the question, as well, about why transponders are possible to disable. At the same time, there isn't a single system on that aircraft that doesn't have a circuit breaker associated with it, and as such there's nothing that can't be disabled. Also, I haven't seen any indication that the transponder was actually turned off. Just because they have no squawk doesn't mean that the airplane wasn't sending. ATC comes in two flavors: primary, which is a blip on a screen that shows altitude and bearing, and with a few sweeps course and speed, and Secondary Surveillance Radar, which sends back an altered return with flight data info embedded into it. What's happening over there is that the military reported some primary returns in various locations, but they don't get actual SSR data back from civvies (they use a different protocal, which while similar isn't the same thing (Identify Friend of Foe, if anybody's wondering)). Radar coverage isn't global, so the aircraft was likely moving in and out of various coverage regions which might or might not have had SSR.
As for the phone issue, that's a simple one. Cell towers are even less global. They're either underwater or they're not within range of a tower, much less the two or three required to triangulate the location.
@Nick, while you're correct, radar is pretty effective over water. It's topography that limits radar to certain altitudes. At sea level you'd pretty much have to be low enough to be behind the curvature of the Earth to hide from radar, and without a sextant and some charts I don't even know if that's possible.
![:lol](https://www.dreamtheaterforums.org/boards/Smileys/default/lol.gif)
Lastly, I'll point out that Steve Fosset remained missing for a year and a half, and he was smack dab in the middle of So-Cal. Only found him because a hiker stumbled across him. Yes, it was a smaller plane, but they had a lot more to go by with a general location. In Malaysia they're looking for flotsam somewhere on the South China Sea.