If it's unsafe for commercial flights, it's unsafe for non-commercial flights... right? And they both share the same airspaces, airways, and terminal areas... if a flight using a hand-held is not where it says they are, that commercial flight nearby with a panel-mount is not any safer (unless they have TCAS, I suppose).
Obviously, controllers and pilots have figured out how to work around this, even though these units are for "situational awareness" only under IFR...
Controllers may actually be finding that things on airways and at intersections are a bit more orderly with IFR pilots "misusing" handhelds than they were when everyone had only ground-based navaids and dead reckoning to work with. Wouldn't surprise me.
But... I think very reliable accuracy is pretty damn important in terminal environments, or on any approach or departure, regardless of whether or not it's a revenue flight.