Pilot In Command

Let's start with a funny movie:

http://www.youtube.com/watch?v=ScvG0...layer_embedded

(For those who cannot or do not want to watch it, a summary: pilot of
a small airplane pretends to pass out, passenger panics.)

Now, let's assume that the pilot really passed out. Let's also assume
that the passenger is capable of controlling the plane, but cannot
legally do so for any reason. For example:
- soloed a plane, but never got licensed
- BFR expired
- lost his medical
....etc.

Would this person be considered a PIC by US regulations? This seems
obvious. But, the U.S. CFR Title 14, Part 1, Section 1.1 defines
"pilot in command" as:
"...the person who: (1) Has final authority and responsibility for the
operation and safety of the flight; (2) Has been designated as pilot
in command before or during the flight; and (3) Holds the appropriate
category, class, and type rating, if appropriate, for the conduct of
the flight."

The last sentence seems to state that one is not a pilot in command,
unless his/her paperwork is in order.

Any comments? Is anyone aware of any legal precedent answering this
question?

Bart