Hate to say it but we bought a similar jet boat and it lasted only a year for the same reason.  We had the issue with the jet wash being a real issue for the kids while tubing.  The boat runs very shallow and the force of the water cannot be controlled.  I looked at changing the plate angle, etc but could not it any better.
As we learned, nothing beats a prop in the water for good water sports.  Sorry.
					
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Jnizi
2007 Vista 338 "Better Yet"
Previously: 
2007 Vista 258 " Just Right"
2005 Horizon 230