I dont think its illegal to buy and install outboards, In merc's case now they want you to have the dealer install the motor and they sort of make that happen with warranty hype. But to be fair to merc, the reasons are two fold, first software has to be installed in the motor after install, and the engine needs to be run and checked against that software, and merc doesnt make available that software to the home buyers.
Now I could be wrong and was sold a bill of goods when I was told this, and I think any one with the slightest ability could install a new motor, its all plug and play anyway. Being a do it yourselfer, I would get a new motor installed and have the dealer responsible for the right set up. I dont think merc can just say your motor is not under warranty if you install it yourself, especially if you took it to a dealer and had them check it for the initial run up. But heres where it gets sticky, by doing that the dealer is going to want a couple hundred bucks, the installation fee, mine anyway, was 700.00 bucks. So the difference isnt much.
My hats off to those that installed their own motor, I have done a few myself, but at least the optimax that has to be set to 10 hour break in mode, where double oil is injected to the engine for 10 hours, I think its best to have that engine installed. Now with e teck, you can get a motor sent to your home and install it yourself and the software is already installed for all that stuff. So I think merc's thinking is to eliminate or cut down warranty work by having an authorized dealer overlook the install.
Even the small outboards from everyone need to be set up before we take them home, Not the computer, but the oil and initial run up. Buying on line you will get a big fat tag on the motor saying that oil needs to be added before you start the motor, But the motors were set up from the seller. At least thats the claims of the sellers on line.
To install a motor just to save a few hundred bucks, isnt the right reason to do it, if someone wants to because its fun, get a couple buddies over have a few beers and get her done is cool.....
Mike