I smiled at the part of your thread, "My 96 Yamaha I owned for 12 years, just as fast never ever broke"... I've still got my old Yamahammers, and my older 2 stroke GTX, SPI and Challenger boat. Pretty much for this exact reason. The 4TEC motor is nice, but I don't like the headaches that come with them.
You sound like you already know what's wrong with it. You seem to know that in 2005, the SC were equipped with the ceramic washers that would deteriate when exposed to synthetic oils. Then again, is there anything wrong with it? The SC is not suppose to just free spin. The washers are called "clutch washers". These are suppose to allow give between the gearing of the charger to teh motor. The SC spins over at 40,000 rpm, so if your running, get some air, the motor will spin off. WHen you land in the water and reconnect, the motor will grab the water almost instantly. THis is why you have slip washers. If the SC tried to grab instantly from 40,000 rpm, it'd break gears and shafts.
So, the answer about "hard to turn" is yes, ... it should have resistance on it. If it free wheels, the washers are worn out and need to be replaced.