Further thoughts after my last remarks in the 1.06 patch thread:
I'm just now beginning to get some real experience with the naval game. In the 75-83 campaign I'm playing under 1.05 vs. an opponent, the French have finally arrived and there has been one large naval battle. In the same campaign I'm playing vs. Athena under 1.06, the French and Spanish are in and so I'm also seeing how naval warfare works under the new patch (and AFAIK 1.06 changed nothing affecting the mechanics of naval combat or repair).
So, two points at this early stage, as suggestions for later patches:
1) Repairs take far too long. I can plant Howe in Charleston or New York (i.e. large ports with depots) and watch for almost an entire year before any of his ships gain any strength. Assuming naval supplies (principally timber and cordage) were available, every authority I've consulted indicates that 18th c. ships could be repaired fairly quickly.
2) Naval battles are far too decisive for the era. 18th c. naval warfare was famously indecisive, and my reading tells me that ships of the line were rarely sunk outright. The main effect of fleet engagements seems to have been that one or both sides' ships and crews were pounded to ineffectiveness, which would then force one or both sides to retire to port for refit. I haven't done a count yet, but in all the naval battles of the AWI, I'd be surprised if I found more than a handful of cases where SOLs were destroyed outright by enemy action. Yet in the last two major engagements I've played, the losses were half-a-dozen or more ships.
My suggestion: If possible, retool naval combat equations so that a) losses of cohesion are very steep and losses of strength less likely than now, and b) increase the rate of repairs for ships in port and decrease the cohesion recovery rate. In other words, a fleet on the losing end (or for that matter, the winner too) of a major engagement should generally be reduced to ineffectiveness for several turns, but few ships should be lost outright.