..... just wow.
While it might seem rather inticing to think about, let's discuss a few of the technical difficulties here.
First, a wave runner (or jetski, whatever you call it) has NO transmission at all. They are direct drive through a rubber coupler that turns the impeller the entire time. "Neutral" is achieved by balancing the amount of water being pumped out the back versus "thrust reversed" out the front.
Second, wave runner engines are high volume no pressure total loss cooled. They aren't designed to run as a closed loops system in part, because, of their co-location with a unlimited supply of cooling capacity. I'm not sure if it would be detrimental or not to run a jetski engine under pressurized coolant operation (my thoughts are not) but that would require basically a complete redesign in itself.
Third, we cannot cheat the laws of thermodynamics here.... 1 single 200cc 2 stroke puts out "X" amount of heat. 700cc twin puts out "X times 7/2" amount of heat. You would need a MONSTER radiator to have enough cooling capacity to run it (that's if you get the system to run under pressure!).
Fourth, jetski engines are designed with a single "wet" head pipe usually. While this is good for a jetski (less space and noise without sacrificing power too much) it wouldn't work well for a quad. The system would consume huge amounts of water to work like it's designed and without water in it, the pipe wouldn't work as well.
Fifth, the power to weight to size advantage of the blaster is in that it's small and nimble with a decent amount of power. Put a HUGE engine like what comes in a jetski in and while it may have a lot more power, it will suffer in the other ways. Maybe good for a hillshooter/dragger?
Now, if we want to delve into the ridiculous.... let's discuss the possiblity of putting a ~650cc snomobile engine in a blaster frame. They're designed to run in a manner SIMILAR to the blaster (pressurized coolant system with a shaft drive output and transmission). It would still take a monster cooling system (or very short operation times), custom pipes, and would be heavy and overpowered but it would be a lot less fab/redesign work....