Yes Very much like that but the U Shape Extended around the whole prop much like those ona Submarine sorta set up..

I also Had a Toy boat when I was 7 that had a Very Simple Jet Drive..
The Motor was mounted Vertical with the Impeller Directly under neath it and the Blades would turn were Curved but Dead vertical much like the set up on a Hand Blender and it had a Steerable outer Jet.. Was Very effective..
Only Problem I could See with its design was that if it was moving fast enough There wouldnt be any water for the Impeller to push.. It was sort of a "New Saftey" Design for toy boats where the Propeller was hidden in the Hulll so little fingers couldnt get cut..