I started this thread and I intend to finish it. Here are my findings and
comments:

Findings:
Others have experienced the same problem.
This problem goes back through multiple model years.
The offending item (the hydobox) is still present in new models.

Comments:
It is MY belief that the inclusion of the "Hydrobox" introduced a potential
weakness into an otherwise soundly designed boat.
My Malibu is a beatiful boat. The performance and skiability are
fantastic. It contains a hydrobox.
The Malibu company line is that this is a dealer issue, they have NEVER
commented on the design of the hydrobox that I know of.
Many dedicated Malibu dealers seem willing to follow this company line and
even expouse the necessity of it.
Some dedicated Malibu "folks" do not like the free exchange of information
on such subjects.
Many Malibu customers have asked Malibu to look into a design change in this
area (see malibuboatowners.com, the top six things Malibu needs to change).

Final conclusion:
I DEMAND quality in the goods I purchase. This includes everything from the
design of the item, to the manufactuing, to the actually delivery of the
item, to the follow-up care. For that reason, I have always carefully
chosen the items I buy. I alone screwed up on this one. It appears I did
not do my homework well enough and fell victim to the "pretty girl at the
end of the bar". She was fun, but not someone I should have brought home.
In my opinion (don't flame it, it's my opinion and I am entitled to it just
as Malibu is entitled to theirs) this is a serious design flaw that has been
allowed to continue for way too long. I even asked 3 engineers whom I have
worked with to look at it and they too feel the same the way. As such, I
will work to have my boat repaired in the Malibu accepted manner by a
dedicated and caring dealer and I will do my best to find the boat a loving
home. I will then do extensive homework and purchase another brand until I
hear that Malibu has addressed the issue openly and truthfully or until I
retire from watersports Malibu-less. This is not the watersports lesson I
had hoped to share with my daughter but it is still an important, yet
costly, life experience.

Thanks to all that have listened and added your comments. Best of luck and
may you enjoy the warm weather and the calm water. Also, it was never my
intent to rant, rave, demean, argue, infuriate, or otherwise. My sole
purpose was the open exchange of information. Have a nice
day/week/month/year/life!