I had a '95 Prostar 205 and it worked out well for my family of 4 however was a little tight with more adults in it, however doable. The lake we boat on is lake similar to the lake you boat on. It's the busiest lake in all of MN, on the weekend there are large 50+ people dinner cruise boats and personal ~40' pleasure cruisers which throw some big wakes... Often times the main lake is a like a washing machine with rollers crashing into other.
The PS 205 was manageable in these waters however you had to keep it off plane and just push the bow. Doing this allowed you to push through the waves vs bounce on them. You also had to be ready to 'pop' the throttle in no wake areas if a big boat sent a wave your way otherwise you'd get some water over the bow. Can't say it was alway enjoyable to drive through this but once you got to quieter parts of the lake it was nice!
All in all I'd say a DD ski boat will be best for your water sports needs however it will 100% be a compromise on ride quality. For your price you can find a decent PS 205 but it will be closer to $10k and ~$12k is more realistic. I looked for mine for over a year and when I sold it I sold it for what I paid for it despite more hours due to the demand for the model.
Know that in '96 the hull on the PS 205 changed to be slightly bigger but this changed the wake, thus the purest prefer the '95 or earlier PS 205. Also '94 was when EFI was introduced to the PS 190/ 205, something else to keep in mind as you look.