This reminds me of something that might help somebody.... The rear electrical box, in this case it was on a 2000 GTi,, there's a 15 Amp fuse, and a push together connection that powers the MPEM when the engine is not running. My fuse receptacle had that oxidation growth down inside of the contacts, and the push-fit was lightly oxidized. I was not getting the beep beep until I cleaned both. After cleaning I applied dielectric compound to the contact areas before re-connecting. This dielectric compound is nothing more than silicone grease, and is an insulator, but as tightly as the contacts fit, that wasn't a problem. I guess a better way would be to make the connection first, and then apply the grease to keep moisture out. the stuff is great for rubber O-rings too.
About copper wires that oxidize within the insulation.... what makes it start? Saltwater is one way. How it gets so far into the insulation without either end of the effected wire being infected is a mystery to me. Yes, a "megger" would sure be a good thing to use. I remember seeing submersible cable for an oil well being tested with something similar, and I believe it induces a voltage into the conductor being tested, then measures the current loss or voltage drop.
Another possible high resistance connection on Seadoos is the male/female connectors crimped onto the end of the wires. They aren't soldered, just crimped, and are worthy of a visual when troubleshooting electrical issues. Also are the pins on the MPEM connectors, and also on the MPEM, the slots where the fuses plug in.