We have no problems. The exhaust cools off real quick as it leaves the outlet. Like you said - certainly wouldn't throw a fender over it.
It really doesn't smell much at all. It only stinks during startup because there's a fair amount of unburnt diesel in the exhaust. Once it's cranking, she ain't bad.
Also, no soot problems for us. Ours comes out the side and we can saddle right up to the dock without problems. We're in Boston, so ours puts out on those cold days too.
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