Huge difference between splash hitting and true submersion, which seems to be what the topic is. I've found that by the time I have my front axle submersed, then chances are it's gonna be there long enough for me to either pull myself out with the bucket, grab the come-along, or go buy another 12 pack for whichever neighbor is volunteered to rescue me. An axle immersed in water is not going to take long to cool, and it won't take long to create suction. I'd rather have the water and debris have to work around a seal than straight through a vent.
If the plug is not tight, then it's be able to deal with the gradual pressure changes and we wouldn't be talking about venting? Still seems to me that if I can build enough pressure in the limited space of an X to blast seals, then chances are there was a mechanical issue or I had too much oil, therefore not enough air volume. Just like overfilling a crankcase, if there's no air to compress, the pressure WILL find a way out.
Show me a race car that hits water at 150mph that is deep enough to reach a vent (I, again, don't think splash is an issue) and I'll show you a race car with bigger issues than water contamination and a race driver with loin cloth contamination.
You keep mentioning tranny. A tranny would have a FAR broader operating temp. range to deal with than a front end. No comparison.
As for running a vent tube, which would be my option if I felt a vent was warranted, there is no need for an expansion tank. Just run the hose up to a high point, such as the radiator support, loop the end down, and put a small inline fuel filter on it. If you can lift an axle end higher than that point, I hope you have your ROPS up and seatbelt on.
Think simple, less things to break.