I don't know anything about your boat, but if you can't operate at legal speeds AND be able to see where you are going, then it should not be on a crowded lake.
I have heard the switchable exhaust story before. There might be a few responsible people that would use it in a crowded environment. However I'm sure the reason it is illegal is because it would mostly be used to quiet down when the Marine Patrol was around.... I was born at night, but I wasn't born LAST night.
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