I never said the exhaust area was connected to the water intake.
Let me be more specific, the key could have fallen into the water intake plenum. Flushing from the intake ports on the side of the lower unit and back-flushing from the top of the lower unit where water comes into the bottom of the pump would be appropriate. Might break it loose from wherever it's hiding.
And thinking about it, holding the L/U upside down and then flushing thru the intakes might be the best course of action, since the key is gonna be spit out at the pump area if it's in there somewhere. Backflushing might drive it down, making the situation worse. If the intake ports were like some that have bolted-in plastic-mesh screens, it'd be really easy to pull those and have easy access to the plenum. But looking at the diagram, the ports are drilled into the gearcase.
I'm assuming the owner has taken off the lower pump plate so he could see into the water passage area, agree it's possible the key is just sitting up there, which would be the best scenario.