Yes you can compensate within reason, as you can run out of prop selection. With a 5.7 and a1.81, unless the boat was real heavy you'd probably need a 23" pitch. You can always buy an drive upper if you can't prop around it.
Yes within reason, maybe my ratio is wrong too it may be a 1.65, but with the 70 hp or so jump can the gears that came factory withstand the torque of that tall of prop?
I know they roll off the factory floor with the best ratio, and if he needs to change it he will just to save grace its more to get the absolute regarding ratio's vs power. I know they change ratios in different elevations i have no idea if certain boats are designated off the line with the proper ratio for those elevations.
People are saying if they stay with the same gear ratio as the 4.3 the 5.7 will burn the gears out prematurily.
But all the searches with guys who have done this, have not changed it (within reason) from a power upgrade.