Agree. I ski regularly with two 196s and my Response LX from the same vintage. My vinyl has less cracking and it's generally held up better than the Nautiques, though the Nautiques are brick poohouses. Maybe fit and finish of the Nautiques might be slightly better, but Malibu's attention to detail at that point in time was better than anyone else's in the industry, and it's something they've lost since then, sadly.
I mean, who else upholsters the hinge on the observer seatback so you don't have a bare metal hinge there? One of the many many corners they started cutting later in the '00s decade.
On the noise, $30 bucks at Home Depot will have you running quiet, or you can swap out the factory mufflers, which don't really do much of anything, with something with additional baffling.