Satellite guy here. I really really enjoyed this analysis.

My only point of objection (does anyone dare object to kleinbl00?) is in your assumptions on our current capabilities regarding satellite image resolution.

It's likely that we've worked our way far out of the megapixel range, and combined this capability with fish-eye lensing techniques. The general rule is that the information in the public domain is ~15 years outdated behind what's actually being employed on the cutting edge of tech. That interval of time may have shortened somewhat, thanks to the internet.

So... you'd only need a few pixels of airplane to be able to track its movements. There's a LOT of surveillance stuff in Low Earth Orbit (LEO), and the way that the above linked declassified resolution (6 inches resolution @ 20,000 ft.) scales should be able to resolve something as large as a 777 in LEO, with a fish-eye lens. Again... the usage of a fish-eye lens is presumed, but likely.

Additionally, who says that the field of view of these cameras is limited to staring straight down at the ground? I can assure you that we (the United States) have the ability to select a surveillance satellite and reorient the direction of the onboard sensors in any direction we so desire. Again, this is a question of real-time response to a request, which the Malaysian government probably never had the initiative to initiate on an immediate time scale.

Basically, I'm in love with both kleinbl00 and playing devil's advocate, and in this response, you can behold me tearing myself apart via admiration vs. my love of debate.

I whole-heartedly agree that this is a political quandary based in Malaysia's stubbornness, corruption, and naivety. They will pay for their sins in the way that the international community devalues their authority accordingly.