Stability is certainly an issue. A raft is much less apt to roll over but the pudgy is unlikely to be punctured by debris or sharks rubbing on it and will be much more resistant to sun. It does not need to be repacked and is not dependent on a canister of gas to inflate it. Low interior volume is a downside as well. No more than two people. A liferaft takes up a lot of deck space as well depending on the size of the container. A liferaft may be easier to deploy automatically in an emergency, you would want the pudgy already in the water in event of a bad storm or a holing due to hitting a submerged object. A liferaft is there in the unlikely event you ever need it, kind of like a life insurance policy. The pudgy is useful all the time as a rowing or sailing dinghy. An inflatable dinghy is certainly useful as a liferaft in absence of a real life raft but you don't have the canopy to protect from sun exposure or the automatic deployment capability. Decent stability but not like a liferaft, more apt to roll over in a breaking wave.