"If only I had long, tendril-like appendages with which to reach things!"
Why not teleport to the key? Or, failing that, just walk through every sword in his way, since he can apparently do that, too? During the entire battle, Davy teleports exactly once, when he should have been jumping all over the place. For instance, not once in this movie does Davy wait until Jack Sparrow charges at him with his sword, then teleport Orlando Bloom's character in front of him and watch as he gets stabbed in the dick. Not once. That sums up everything that's wrong with Hollywood today.
Seriously, just a foot lower next time, Hollywood. That's all we ask.
It's like the curse that gave him a squid face also magically prevented Davy from coming up with a use for his powers that wasn't spooking people through jump cuts. Jones conveniently forgets everything about being a maritime god and, as a result, gets his ass handed to him by a drunken moron and his two girlfriends.