I hiked that section (Hwy 79 to 74) over a period of four days last weekend, and saw the police tape still in a circle where they found the gear in the above picture. The gear was long since removed, of course. That photo was taken vertically, and the pad was, in fact, on an extreme slope on the side of the trail, like he was sitting up, looking down the road toward the valley in the west where his friend was going to meet him. It was so sloped that you would have slid down on your pad if you tried to sleep in that position. Not the sort of spot that an "experienced hiker" would have chosen for a long night's bivy.
He was hiking north to south, so he may never have gone to the house at mile 127. The signs for the house are further down the trail, where a cut-off trail has been hacked through the scrub at the narrowest point between the trail and the road where it is closest to the driveway of the house. See:
http://caltopo.com/map?id=403R These marks are drawn from my GPS track and geolocated photos.
Anyway, as for the folks at the house, they seemed to be genuinely nice people. My wife and I met two men there, who were just hanging out on a Saturday afternoon listening to Jazz. One of them was working on rebuilding an old outdoor shower contraption, getting ready for the big party in early May (a week or so after the PCT kickoff) when all the hikers arrive en masse. They showed us the big outdoor grill, and how they'll be having chicken from a homemade smoker barbeque.
They said that when he bought the place ten years ago Mike didn't understand why hikers kept showing up asking for water, until he was shown the official PCT guide book, which stated that hikers could get water there. So he gave them water, naturally. Would YOU turn down thirsty people asking for water? Of course not. Still, I guess it began to develop a life of its own after that, and now it's a big event, and Mike is a certified PCT "Trail Angel" in good standing.
I wouldn't take the negative comments on that video too seriously. Mike is awfully open-hearted and generous to let perfect strangers show up on his property like he does. Reminds me of the late 1960's and early 70's in that regard. He said that the weekend prior, when it had snowed (that was the weekend they called off the search), some hiker had broken into the trailer and stayed in there when nobody else was home. I don't think he was particularly mad about it, either, as no real harm was done; the hiker was freezing!
We got a gallon or two of water and hiked northward another couple of miles before making camp. But not until after we had to refuse their offer to share a spaghetti dinner with chicken. Nice folks!
Personally, I think that if the missing hiker had gone to Mike's place he'd still be alive today.
Edit: Nice Job, Jim! You got your map perfect!