maintenance update....
I was at the boat yesterday and decided to try the first set of options listed to try and figure out this fuel issue. I started with righting the primer bulb to a straight vertical position. With the hatch open so I could see the bulb under power, I went WOT down river for a few miles. Longer than I had run the engine to date WOT. No problems!
The bulb stayed firm and fuel of fuel. There was no reduction or collapse in the bulbs size.
Now I am not ready to say "Yup, its fixed", but it was a promising trial. Another thing I noticed is prior to my trial run, I pumped the bulb in its original horizontal position. It will move fuel but would never get hard. Similar to what I read online through various forums. Most of the forums followed up with the user righting his bulb to vertical, and immediately after making the modification, a few pumps and the bulb would stiffen right up.
Sure enough, the exact same scenario happened to me. As soon as I put the bulb vertical, four squeezes of the priming bulb and it became very hard and pressurized. A complete 180 from the horizontal position.
I am near confident though it is not a breather issue. As mentioned, the fuel line is 3/8" diameter. My breather is actually has a inside diameter of about 5/8", so nearly twice that of my fuel line, No matter how much fuel is drawn, I don't think it is possible to create a vacuum as a result of the breather line.
I still think it could be an obstruction issue in the tank, but if I go out another 2-3 times and really pump some gas through at WOT with no problems, I think it can be attributed to the position of the priming bulb.
Thanks for the insights guys. I will keep you posted on further developments. I would recommend to everyone, check the position of your primer bulb. It is likely a very very easy mod (took cutting one zap strap and relocating it for me) and it will certainly not hurt, even if you are running horizontal without issue.
I should note: position the bulb vertical with the fuel flowing skyward.