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DamnedifIknow. Might be. The potential for damage to sea life, other vessels and the plane/boat itself. I would think the inter-island ferries would be hindered by long voyage times and competition with airlines. I'm not a student of what did 'em in.
My recollection of things was it was a combination of shoreline erosion caused by the large wake of the boats, and environmental issues involving collisions with whales and such.
Dave