I have thought about this scenario, too, and I actually believe it is the most likely scenario where AJ is still alive. These are hardened career criminals on both ends of the debt, so the abductors would definitely tell WH almost immediately and also tell him if LE finds out, she dies immediately. That would explain why the initial fliers have his cell # on them instead of NPD and why they went to lengths to tear down Zach's. It would explain why they're not looking hard but are trying hard to raise money. It could also explain the witness intimidation if the hanger-on kids are part of WH's distribution network and have the gist of what's happening. It would also explain the sudden need to ammo if he thought he'd try to locate them and go rescue AJ himself Charles Bronson style (which would obviously be stupid, but WH, and especially WH on coke, isn't known to really think things through).
The one thing it doesn't explain (and the big red flag with the scenario) is why the great lengths to frame texty kid (including committing felonies along the way) if he knows his drug ring associates are holding her? Texty and/or his mom are highly unlikely to be connected to the ring, so it doesn't make sense to be that risky, even for WH. For that reason, Occam's Razor leads me to believe that the most likely outcome is still that WH did something and AJ is no longer alive.
And "okay" is relative. Being held hostage by a gang of thugs in a drug ring is more "okay" than killed and dumped in a swamp somewhere.
If nothing else, thank you for at least confirming I'm not way the heck out there.
As far as the "framing" goes, I'm of the opinion WH thinks he's smarter than LE and that it was all an attempt at misdirection. I believe he thought he could get away with waving the shiny object and not have it come back to him in a way that would implicate him, and he comes out ahead no matter what happens. On the one had, if LE believes that he did find the jacket and are willing to enter it in to evidence, the framing works. On the other hand, if LE doesn't believe him, he's contaminated a crime scene and the evidence. I believe he had the "discussion" with everyone in the house, so if asked witnesses could testify that his intention was to go in and "find" it, that they all knew the jacket was in there, thereby making WH look at the very least like an emotional father who felt helpless and wanted to do something.
And all of this "okay" stuff to me revolves around the idea that there was a heck of a lot more going on in the house than just being a family dwelling. I don't believe the kids are involved, but I can't believe that JH didn't at least know what was WH was doing, and perhaps was involved even more, thus the lack of emotion, the phrasing of her statements, her actions, etc, that would indicate that AJ is still "ok," at least in the sense of not being dead as so eloquently stated above.