The “too low” comment was in relation to the controller being able to provide “flight following” for him (radar coverage). 1000’ AGL is fairly normal for a helicopter on a local flight. I do agree with your “lack of terrain awareness in VFR conditions”, and actually it was “Special VFR” conditions at the time with the fog layer base at maybe 1300-1500 feet in the area. His last reported altitude were around 2000 feet before the crash.
Thanks for clarifying that!