Re: tunnel drive
I think Penn Yann boats had them quite a few years ago. This is used on a relatively large boat with a shaft drive. It is not I/O so the shaft drive is a bit simpler, however, it is less maneuverable
The bottom of a deep vee hull is inverted into a tapered "tunnel" around 6 feet long or so. Advantages are a more horizontal propellor shaft, and a decreased draft because the prop is about 2/3 enclosed in the tunnel. Prop is also protected somewhat. Since it is enclosed by the tunnel, it also is a bit more efficient.
You don't see too many of them around, so there must also be some deficiencies.