I just came up with it off the top of my head while I was playing too, I was sailing around and thought "this would be awesome". Then I thought of how to use that sweet GFX ship that was made, and I really think this would be good for it.
Also, it would mean Kingdoms would have their own boarders, people would be trying to keep more ocean for themselves to hunt, and boarder clashes could erupt.
Seeing as how that new ship would be superior in combat, I'm sure if anyone saw one captured they would send their whole navy to try to sieze it from the other kingdom. The other kingdom would send their navy to intercept as well, and you know what happens next

Thats why it should be half way damaged, give it a chance to be sunk/captured.
cbkbud, how are you called a developer when a little scripting turns you off? No offense, it just seems that a little working could do our devs some good, you'd get some practice, troubleshoot any bugs. And in the end you'd learn from your mistakes.
Also, a hat that drops wont go for 3 row, unless rows start becoming more common. If all items start to become common, we will all be able to fight each other more evenly. Wars could be possible, etc. And make the pirates 100 resistance to death. That should fix your bile problems.