If you are going to use stickers, flags and high fines why not just require licensing.
I can think of many reasons why labeling the boat wouldn't work. It's the driver, not the boat (where have I heard that before?).
My idea is that the DRIVER should wear a brightly colored lanyard around his neck with a waterproof proof card attached certifying the driver. That way I could drive ANY boat without the need for a sticker or flag.
If you are going to identify the BOAT you might as well just require that the owner has the safety certificate when he registers it. That way you'd know that any registered boat has a safety certified owner.
Of course none of this will fly. Look how much trouble it was to pass this weak, phased in training that we have now.
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