I'm a great fan of replacing points. Apart from the fact that I'm an electronics tech, points are so unreliable. Don't use them for a month and the surfaces oxidize. Use them and they burn (even in a correctly set up system), the heel wears, upsetting the dwell and the timing, and the Kettering system just can't give as good a spark as an electronic one. The advantages of the electronic systems are that once you set them up, that's it, you usually don't need to adjust them again, ever! And because it's electronic, the dwell adjusts with the engine speed, so you always get the best possible spark. And that spark is 'bi-directional', meaning it has the same duration and amplitude positive as negative, so spark plugs last longer, and the rise time is so much quicker, meaning a hotter spark, all the better for starting and running.
As for the system running on full 12v, it will not make the module burn out, as it's designed to run on that voltage. Many years ago, when I also had a 165 in my boat, I built my own capacitor discharge ignition system. The changes in the engine was quite noticeable. Faster starts, smoother idle, and a slight improvement in fuel economy. I even had friends ask me to build the same systems for their car engines, which I did. I also had a system on my car. That system was even transferred from each car that I sold and put into the new one. It lasted until I sold my last petrol engined car (and moved to diesel)...
And sorry Scott, I haven't seen a set of points survive in a boat for any more than about 4 years. Manufacturer's recommendation is annual replacement, so the electronic upgrade will pay for itself very quickly.
So yes, I'd strongly recommend it.
Chris.........