Peter, you can see the exhaust check valve assembly up underneath the transom coaming...you almost have to use a mirror to find it! So, that is for sure high enough to prevent water from coming in from exhaust port. But, as you can see, the waterlock muffler has to sit in little area near where prop shaft exits boat...and that is NOT very much lower than exhaust elbow.. Of course a higher elbow would be the answer, however, wrong answer, as we have no room in cockpit for that! ;-)
So, always make sure you high end waterlock muffler stays where it should!
And, the exhaust hose is HELL to work with, I had a fight trying to get it back on my muffler, as it was too long and was almost horizontal so I cut some off (hello heavy duty wirecutters, there is heavy duty wire in it too) I tried heat gun but then realized there must be a tool or something to to it, and sure enough, when mechanic came to finish rebuilding, he said: oh yes, we use a tool! And here's me and all 110 lbs of me and my little hands wrestling with this hose, good for a laugh!
AND: if you engine is having a hard time starting for whatever reason: CLOSE the raw water intake so the cooling sea water does not build up in the muffler and then flow back into the elbow! If engine can't start, it can't expel saltwater, so you can be in trouble. Then, the minute it starts, dive like a madman to open the raw water intake....and if you forget, your (should be) habit of looking over the stern to see if water is splooshing out of the exhaust will tell you you forgot something very important!! ;-)
“You get a boat for only one reason, because you want one. If you’re worried about being practical, forget boats.”