Jets don't become efficient until you get to rather large HP numbers. I'll give you a little story to demonstrate.
Back in the day, outboards were rated at the powerhead. A 40 hp outboard actually put about 35 hp to the prop. So if you bought a 40hp outboard with a jet lower drive, you might only be putting 25 hp to the water.
Newer outboards are rated at the prop. A 40hp outboard puts 40hp to the water and the powerhead might make 47 hp. That changed the way a jet outboard had to be rated. Now they're usually marketed as a 60/40, meaning they took the 60hp outboard (which might make 68 at the crank) and have to advertise it as a 40 hp motor because that's all that makes it to the water.
Jet drives have fewer parasitic losses, but the liquid-liquid thrust is not efficient. With a prop, the power loses are proportional to the power. If you lose 15% power getting to the prop, you lose a lot more power with a 200hp outboard than you do with a 20hp. Jets on the other hand have a more fixed loss of (let's say) 20hp. At low hp levels, they lose up to 50% of their power. At large hp numbers, that 20hp loss is only maybe 4%.
Jet Skis don't have jet drives because they're fast, they have jets because the liability of people's legs being in close proximity to a swirling, 150 hp food processor is a non-starter.
All of those fun jet boats from the 60s and 70s often had a featherweight hull and a big block making 400 hp, and they still only made it to about 70-80 mph at best. If you were somehow able to hook up an outdrive to that same 400 hp, you'd be looking at 120 mph or more. Actually, you'd be looking at the ceiling of a hospital room, but I'm speaking hypothetically. Or, to look at it another way, you put 150 hp in a relatively light jet ski with a jet drive and it does 60 mph. But if you put a 150hp outboard with a prop on a 16' bass boat that is 8' wide and weighs three times as much.... you still get 60 mph. Jets don't make a jet boat fast. Making enough power to overcome the jet's inefficiencies makes them fast.
Jets (in most situations) should be a drive choice as opposed to a performance choice. Shallow waters, proximity of props to humans, and other outside factors have a large role in choosing a jet drive, but (oversimplification here) jets are to performance boating as automatic transmissions are to motorsport. It's rarely chosen because it is a better-performing means of getting power to the water.