Ok let's look at this.
Sorry, but my brain only works in the metric system...
So if we assume a 1 cubic meter float, oscillating a distance of 1m. Force due to gravity 9.8m/s2. This gives us 9800N.m on each power stroke. If we then assume a wave period of 6 seconds, we have one power stroke delivering 9800N.m every 6 seconds, or a total energy of 9800joules per 6 seconds. Averaged over time, we get 1633 J per second.
Then convert joules to watts, 1633 joules per second = 1.6kW. Now you see why I like the metric system btw
So we then connect this to a typical water propeller, with an efficiency of 70% typical, we have a propulsive force equal to just over 1kW assuming no losses in the mechanical drive train that turns it.
Now the problem as I see it, the boats displacement must be significantly greater than the float used to drive the propeller, otherwise the float causes the entire boat to rise instead of raising the float relative to the rest of the ship. That is, if the entire ship displacement is 1 cu meter, then you cannot generate anything unless you anchor it to the sea floor as the entire ship rises and falls with the wave period. If you have a 1000cu meter displacement ship, then it's heave position in the seaway will be relatively stationary assuming 1m wave height. In this situation, the local wave height relative to the hull could be used to generate some power, however 1kw won't even compensate for the windage of such a large vessel.
In short, I can't see enough energy density in this system that would make it useful for propulsion. It could be harnessed as a small generator to save fuel burned in electrical power generation aboard ships, but the maintenance and other costs hardly make it appealing or cost effective...