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As for exceeding the capacity plate, there is no documented law (state or federal) that says you can't exceed the rating. The plate refers to the manufacturer and their ratings at time of sale.

Some mechanics will not install a motor that exceeds the plate. Some will.

Some insurance companies will not cover hp that exceeds the plate. Some will.

Re-powering is a complex analysis. Keep the overpowering out of it for now and just compare all the other factors to help you narrow your selection.

Here is a story of that says a lot about hp ratings. When the Nantucket was first introduced the max hp was 115. Several years later the max rating for the same hull with a new name (Outrage 190) was 150. Today the same boat has a max rating of 200.

Why all the changes? Hp rating is partly tied to engine weight. Back in the first model year, the highest hp 4 stroke Mercury motor for the weight rating was 115. After the introduction of the 4 cyl Verado motors, the hp rating increased as each engine was offered. 135 then 150 followed by 175 and now it is 200.

All in all the goal is low weight and decent performance.