I have a 2000 X-Star, which is essentially the exact same boat (motor, hull, tower, etc.). We had PP installed for about the same price as you see above. Wouldn't own another boat without it. Remember that the older x-Stars are the same hull (more or less) as the new X1's.
Good point about mounting the paddle wheel as near to center as possible. We had ours mounted about 6 inches off center (we didn't watch the dealer install), and we get significant difference in speed when turning different directions.