When I took the stock MacGreggor white foam blocks out of my boat the lower ones were waterlogged and covered with mold! I threw them out.
I like the extra storage space.
I took a look at how many other boat manufactures put foam flotation blocks in there boats. Not too many. (Why is that?)
In my opinion the foam is there for us "new" sailors. Kind of like training wheels on a kids bike. If the other boats don't have it why should I?
I've gained confidence in my ability and the boats ability. I can't knock it over. I've tried allot! So I removed the foam from the V berth and bilge areas. It keeps the bilge area cleaner too.
There still is a bit under the cockpit seat... I can't get at it easily.
just a few thoughts after reading your post...
with few exceptions, styrofoam wont waterlog unless it has severely degraded, but it will mildew in damp areas.
degradation is caused by something that comes in contact with it, whether its too much sunlight, a chemical, or something that is airborne, but otherwise its a very stabile closed cell foam. but even then, the foam has to be submerged to uptake water, as it is not absorbant.
styrofoam can retain a bit of moisture in the areas of the mildew, but its only about 1/8 inch or less deep on the surface, unless it has degraded deeper into the surface.
so for whatever reason yours was waterlogged, its a very uncommon and abnormal occurance.
other boats do use foam... now. but not all of them.
Roger Macgregor was very innovative and a pioneer in several developements that many others have followed.... foam in the hull was one of them. his market was directed towards families with kids, and safety as well as simplicity was his main selling point. he produced an excellent boat for the market he was targeting.
some manufactures dont use the simplicity of the blocks, but they sometimes put the foam between the liner and hull, or some actually incorporate it into the hull alone, making it a couple inches thick, and then the liner goes in...
some manufactures dont have any floatation, and some owners are affluent enough that if their boat swamps, they no longer want it anyway.... but the best chance of survival in open water,(without a liferaft) is if you have a large piece of floating debris to hang onto while waiting for rescue. or your boat if it remains afloat.
and for several years now, positive buoyancy has been a requirement on all powerboat hulls.....
and very much like you, when I got my first boat, I put it thru things that i wouldnt ever think of doing with the boat i have now. but i learned a lot about things that have to do with sailing and boat handeling, and the whys and the hows of it all (and still learning). with the foam in place I felt confident. I took it out many times and played in the storms when no other boats wanted to be there. I tried to get it to knock down... and it wouldnt do it for me. but i had fun trying cuz i didnt know any better

but there was one time I decided it was time to douse the sails and motor in, and as I was turning the boat into the wind, thats the moment i realized that a knockdown will come when you least expect it...its fast, its thorough, is scary, its wet, and its hard to regain control very fast when it happens so fast you cant get your wits about you....
I knocked down to starboard and scooped my cockpit full of water, and it seemed like a minute or two before the boat slowly stood back up as it rounded into the wind, and as it went thru the eye of the wind, it slammed down to port...... and for as much excitement as it all was in the moment, Im fairly certain I wont be trying to knock a boat down ever again... it taught me some respect
so no matter how much of a "master" you think you are to your vessel, there will come a time when it will show you a new trick you've never seen before...
my point is... you shouldnt disrespect your boat by thinking she cant to it, because she can.... and she will prove it someday when your not expecting it.
sailboats are different in some respects, but the one thing that is the same no matter what type of boat or how big it is, it doesnt make any difference if you're 300yds off shore, or 300 miles offshore, if your boat goes down, you aint gonna just walk home... and the foam blocks that are hidden below the liner and is in the way for storing more gear will always only be seen as a benefit when you need it the most.