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I believe it rotates to give you the choice of exhaust underwater so it is quieter or wide open for performance.
OldBart, check the rubber grommet where the water pickup tube goes into the lower unit. if it old and cracked it will suck air and you will get less output of water. I think I heard you can find a grommet that fits it at the hardware store, maybe others can be more specific as to size and which store.
i have a HandiTwin, which is 2 cylinders, but has a similar lower unit & pickup tube. I watched your vid, from what I can see your flow looks on the low side.
Edit:
Here is a video, compare your flow to this one and see if it is the same
https://www.youtube.com/watch?v=jHoGXZSoJfwl