You kind of answered your own question. Companies like AquaCraft and Pro Boat sold nitro boats, a lot of them but they were aimed at beginners who found out they're not as easy as nitro RC cars and trucks. Unfortunately electrics have taken over part of the segment that they once had.
I also had a AquaCraft Nitro-Vee that was given to me 4 days before they hit the market. A fun boat but easy to over-prop it which broke the connecting rod.
I have a small pile of .12-powered boats in Deep-Vee, outrigger and a hydro. I haven't run them in years.