I have a 15 amp AC receptical on boat in the cockpit area so that I dont need to run the extension cord through the companionway hatch (mostly so I can close things up for the heater). Inside the boat is wired the end of an about 1 foot extension cord with a multi socket breakout. Definately a hack job but "unsafe" is relitive. I think its safe - but not completely moron proof.
If you look at AC wiring systems, there are three wires - hot, nuetral and earth ground. The hot and nuetral carry all the current and if you somehow short the hot and nuetral, it should trip a breaker somewhere. In my case, the breaker is either in the marina or in my house. So too large of a load or somehow shorting the hot and nuetral together will blow the breaker - but its takes a big current load - like 15 amps (or whatever the breaker is).
Normally, all the current is on the hot and nuetral lines and there should be no current on the earth ground. The GFI simply makes sure that all the current flowing on the hot returns on the nuetral. If there is a small mismatch (and it really is small - like 25 ma), the GFI trips. Ie, if some small portion of the hot current somehow gets on the earth nuetral, the GFI will trip.
So what condition does the GFI protect for? The one important case I can think of is the hair dryer falling into the bath tub. In this case, the water would conduct sufficent current between the hot and the earth ground to trip the GFI breaker. Likely over time, the GFI has saved some lives for this type of accident. I dont think anyone has done a mod to add a hot tub to the inside of one of these trailerable boats (yet

) but there could be some risk of a power cord falling over the side of the boat and posing some risk to someone in the water??? GFI would also trip if there was a short between the hot and the earth ground but in general, so would the main breaker fuse.
If I had some liability for an instal however, I would dang sure put all the safety stuff in. Heck.. I lived in a house which had no earth ground wiring at all (built in the 60's) and somehow survived. Just dont leave the hair dryer near the bathtub.