while the boat in question sure puts out a big wake, my dad had a 15' inboard with a displacement hull, (made in name of "Kingfisher" I think was built by hinckley. Had a 60 HP inboard. and it put out one heck of a wake.
Sometimes its not the size of the boat, nor the horsepower, but the design of the hull (displacement) that causes the wake. I suppose that if the boat in question would increase his speed then the wake would not be as bad.
I think that Skip quoted a law as to riding on the bow, stern, gunnels etc. and I did not see anything about rails being involved, thus I would think that those riding on the bow of that boat were illegal.
