Yes the jet lower unit replaces lower prop unit. You lose about 30% compared to a prop unit.
From the video I think the Suzuki 20 HP 4 stroke which is about 13 HP net would be ok with a light load in 420 Vega model, will let you know when the ice melts.
We ran several motors on the Standard 420 model from 30 HP 2 stroke, 40 hp 2 stroke and 25 HP 4 stroke
25 HP at the Jet and all performed great.
About any place I can put the boat in the water, I can run which opens up a lot of country.
The company that makes most of the outboard jet units in the US.
http://outboardjets.com/