I had a 29' Cascade that had a hydraulic drive. It worked really well and we never had any problems with leaks. It's rare to have a leak with the modern hose and fittings available as long as you don't have any chafe issues on the hose. The
engine can be mounted anywhere, and there is no alignment issue other than the hydraulic
motor to the shaft which is easy.
Docking was a breeze, just set the throttle for the
engine and then use the forward/reverse lever to control the prop speed. With the engine at full
RPM in forward doing over
hull speed you could throw the lever into reverse and stop on a dime. The only issue we had with it was
noise, it made a high pitched whine at
cruise speed that was annoying, I am sure that it could be lessened with some heavy duty
noise suppression. I always wondered about the thrust issue from the shaft, but it never caused any problem while we had it (several years). We never had a problem with the hydraulic oil getting too hot, had a fairly large reservoir, but in a hot climate you would need a cooler. Hydraulic machinery is very reliable, lot's of heavy equipment is all hydraulic (excavators, travel lifts, etc.). There is a loss of about 15% efficiency, that's probably why you don't see it used much, and the additional cost, but it does add a lot of flexibility.