I went on a SRN.4 across the channel; I’ve never felt so sea-sick! Maintenance costs must have been huge, since it was powered by turboprop engines. All the cost of an aeroplane, none of the speed or comfort.
I agree that there's a lot that's impractical about hovercraft - especially when for crossing the channel there's so much competition: ferries, the tunnel, and (as you mention) flying. For people who want to take their car across, as I understand it the hovercraft took about as long as the eurotunnel does now to cross the channel - but the tunnel has much more capacity.
If it had operated closer to Cuba the Americans would surely have used it as a form of torture.