Re: boat wont plane
HP loss calculator for elevation:
Wallace Racing - Braking HP Loss at Altitude Calculator
Shows your 65 horsepower engine loses 12.5 hp at that altitude, so first recognize that at your altitude you have a 52.5 hp engine, if it is in perfect running condition. There is NOTHING that can compensate for this elevation loss except installing a turbo or supercharger...it's just gone.
And your compression test, if also performed at that altitude, needs a correction factor of about .83. So your 80 readings divided by .83 = approx 96 per cylinder true compression if you did the test at 6300 ft.
While better than 80, 96 is still not a good compression number, and if the test was accurate it indicates a severely worn engine. HOWEVER compression readings vary greatly by what kind of compression tester you have. For example the 12" long flexible hose found on many cheapo compression testers can reveal drastically low numbers on small cylinder engines (like your 4 cylinder 65) due to the volume of the long hose falsely reducing the compression ratio of each cylinder. You can only obtain accurate compression reading with a VERY short hose (or no hose at all) on a compression tester, when testing a small cylinder engine such as yours.
Anywho...according to NADA, the 1985 sterndrive versions of the 17' Larsons ran a 120 hp motor as standard. So I'm curious what does the Coast Guard placard on your outboard setup say for maximum HP rating? If it says 120 or similar, the answer to your original question is real simple...a boat rated for 120 will REALLY struggle to plane if it only has a 52.5 hp motor installed...especially one that is likely making even less than 52.5 hp...
Knowing your RPM at full throttle would be extremely valuable info.
There are a multitude of factors conspiring against you here...but I am fairly convinced your engine is simply waaaayyyy too small for your intended use and you'll need to find a larger engine if you want your boat to plane.