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In my first try at the Coral Sea I had the Yorktown and Lexington separated by quite a distance. The Yorktown was sunk and a returning strike of about 30+ aircraft were almost all (almost) shown as "KIA carrier unusable no alternative found" Many of these planes should have been able to ditch near DD's most generally and the pilots would have been rescued. Two of my scout bombers were shown "forced transfer as original base damaged" which I am thinking maybe they had not taken off too long before the attack that sunk the Yorktown and therefore had the range and luck to make the Lexington.

But do we need a "forced to ditch" which then results in a KIA or rescued?

The KIA is for the craft. 

Perhaps some of the pilots would get picked up but they wouldn't see action again for some time... outside the scope of the scenario time.

I was wondering if that was maybe it. It just is maybe a bad choice of words to call a piece of equiptment killed. I see the damage as heavy or light so I thought maybe it is referring to the equiptment and not the pilot. Maybe "destroyed" would be a better choice.

Just splitting hairs IMO. 

KIA and Destroyed.. well, you know it's gone down like a cheap hooker either way. [;)]