Re: What makes the OMC outdrives so undesirable?
Another reason is that Mercruiser (for all practical purposes) invented and perfected the stern drive, at least in the USA. Along the way Mercruiser patented (protected) most of the technology they developed.
For example Mercruiser's hydraulic trim and tilt is still basically the same that they came out in the 1960's. When OMC decided to get into the stern drive business, they had to design an alternative trim and tilt system. To get around the Mercruiser patents, OMC (as I remember) actually lifted the rear of the engine to "trim" the outdrive. That (IMO) was a very cumbersome way to trim a stern drive and is why OMC stern drives could not be bolted through and attached to the transom as Mercruisers are. OMC cut a big hole in the transom and used what they called a "flexible marine grade rubber seal" to allow the stern drive to be trimmed THROUGH THE TRANSOM.
In order to tilt (lift) the stern drive OMC used an electric motor and a mechanical gear drive. This system did allow the OMC stern drive to be tilted (lifted) quite a bit higher than the Mercruiser, but it often gave problems because the entire system was mounted on the stern drive in the water.
When the OMC stern drive was tilted all the way up, unlike the Mercruiser which uses a U joint, there was NO physical connection between the engine and the stern drive. When the OMC stern drive was tilted back down, there was a coupling on the stern drive and a matching coupling on the engine that had to mesh in order to transfer power from the engine to the stern drive. I have seen many of these couplings fail.
Also since the OMC stern drive was not bolted through the transom, all the thrust was transferred to the engine itself. In order to push the boat, all the thrust from the OMC stern drive was applied from the stern drive, to the engine mounts, and then directly to the boat's stringers (frame).
There are other differences as well. The bottom line is that Mercruiser patented just about everything on their stern drive. When OMC came along, they had to design their stern drive to get around all the Mercruiser patents. This often (IMO) led to a less than desirable stern drive, but the OMC's did work.
When the Mercruiser patents finally ran out in the late 1970's??, OMC came out with the Cobra drive, which is quite similar to the Mercruiser.