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No more channels being dredged, and a paddle boat has a shallow draft for its size. It would be harder to foul a paddle wheel than a prop as well. It could go places a lot of other water craft could not. Especially if it was converted to use wood as a fuel.
(Not the Russian ones with faulty design, thanks)
Hide out of plain sight. Only really big pirates (fedgov) would be a threat.
Also much safer from hurricanes and the like.