I think the bigger issue is that with more water locked into the ice caps, seas would have been lower worldwide. I don't disagree with you on the fact that the water would have been liquid there, but one hypothesis for the origin of many of the "flood" stories and "Atlantis" style stories is that a land bridge like the one near Gibralter or the one forming one end of the Red sea was "topped" by rising seas and became essentially a waterfall, resulting in the filling of an entire basin and the erosion of what was at one point a land bridge. That would explain language like "... on that day all the springs of the great deep burst forth, and the floodgates of the heavens were opened." (Genesis 7:11) that talk not only about rain falling from the sky, but also from it coming from the earth as well.

This is 100% not my area of expertise, but I think it's interesting how much of the data we can observe about some of this stuff doesn't tell us about all of the data we're missing because it's been destroyed over time and natural processes.