Cruise Fanatic,
I agree that it makes no sense naming a classic cruise liner "boat".
But then IMHO this was not a main reason for Premier's demise. The charter of "The Big Red Boat II" was a technical nightmare and mismanagement (anybody remember the "Seven-Star Service" joke?) was a major factor, as well. Can you spell N-I-E-R-E-N-B-E-R-G?