I could see by the METAR that the weather wasn't great, the pilots last call was 1500' AGL and was VFR so he had a bit of height to play with? On the audio ATC playback the controller says he is to low for flight following but this is a limitation of the radar not the aircrafts height at the time? Watching further the eye witness seems to say there was an explosion, but he also indicates there may have been a problem with the tail rotor. If you had a tail rotor failure, in crappy weather and relative low level and low airspeed, it's not good!