Why the confusion? If you think about it, it should be pretty obvious. The SOA just reflects the fact that you cannot really have an arbitrarily huge dissipation in the transistor die and expect the heat to escape to subspace. Take say 50 amps and 50 volts drain to source. The device would now dissipate a respectable 2,5 kW. The waste power would have to emerge like a welding torch flame to get rid of that kind of power.
So, the maximum currents are always specified for deep saturation and then the low channel resistance is relevant.
Edit: At 17.5 mohm and 50 amps the device would dissipate 42.5 W, a much more reasonable figure. In that operating point the Vds would be just .85 V