Here are their problems:
1)Heavy
2)Inefficient--due to weight and all the u-joints
3)outdrive requires all sorts of maintenance on the U joints, seals and all that
4)they require freshwater cooling in saltwater--more weight, more money, more maintenance, more complication
5)they don't like to be run hard (do you really run your car hard?--no)
6)they mount low in a bilge and will flood out if the boat gets water in it--which happens
7)the interior mounting results in all sorts of fire hazzards and need for ventalation
8)the interior mounting uses up deck space which is valuable in small boats
9)did I mention they are darn heavy
These are among the reasons most small offshore purpose boats are outboard--most--not all. If I ever where to get a "large" boat then I want an inboard.