Maybe, maybe not.
Last statement first...re over revving. Not knowing what size or type boat...it sounds like it is a heavy boat or a pontoon boat. If the motor is overrevving, it generally means the pitch of the prop is too low or the engine is mounted too high and the prop does not have enough water to dig into or it is trimmed too high. None of which should be a major problem, unless the motor is too high and you physically can not lower it.
As for the poor run-ability, it is anyone's guess. Not knowing if you have much mechanical skill, tools or desire.....the compression and spark should be checked. If the compression is bad (should be around 200 psi at wide open throttle), it is time to take a giant step back and reconsider.... If you do not have the ability or tools to check it out, I recommend that you take it to a Honda dealer, who has worked on 50's for a while. They should be able to tell you if the engine is sound and maybe just needs the carburetors cleaned. Once the motor is running properly, it will take some experimenting to find the right size prop.
It is also possible that the fuel has water in it and the engine just needs a good flush.
The idle is probably set high to keep the motor running, since it is probably only running on a two of the three cylinders. Again, that could be a bad cylinder or just dirty carburetor.
If the boat has been sitting for a while, it is a good chance that it was not put away properly and it is just the carburetors.
Also, check the oil and the oil level. Dirty oil indicates neglect. If the oil is too high, it could be either they just put too much oil in or the unburnt fuel is leaking past the rings....another indication of carb problems or could be carbon build up. Spark plugs should be pretty clean, if it is running right.
I feel that I am just sort of rambling at this point. Mostly, just to let you know, there are many reasons for the poor performance. That is why I recommend taking it to a "good" dealer....not a mechanic who says they work on anything. (I hope I did not offend anyone) There are specific things to look for on this engine.
The engine itself is a very strong engine and can take a lot of abuse. So, all the basics check out, I would not hesitate to buy it, but be ready to put some work into it (if you are doing the work yourself) or put some additional money into it (depending on how much has to be done).
If you purchase it, unless the seller can document that the water pump was just changed, I would change the water pump to be sure the cooling system is working correctly from the start.
If you are going to do the check out yourself, let us know and I and others will get more specific on the how to's.
Good luck..
Mike