1. Mercathode is an option on Alpha I drives - standard on BIII. It's a Mercruiser item that in simple terms introduces a small amount of current into the water around the drives to counteract the galvonism that occurs between the dissimilar metals on the dirve (ie aluminum outdrive and SS props). Past that I don't fully understand how it works. But it does - I had issues with my BIII, but after the Mercathode was replaced and the anodes were replaced (magnesium=freshwater, aluminum/zinc = saltwater) I had not more corrosion issues with my BIII.
2. Anodes, make sure you use the right ones and change them when needed, magnesium=freshwater, aluminum / zinc = salt water.
3. If you can live with an aluminum propeller then do it. The root cause of corrsion on outdrives is the reaction (galvonism) between dissimilar metals submersed in a conduite (water). The outdrive is made of aluminum, when you put on a SS propeller you now have a big issue with two types of metal. Get a nick in the paint to expose some alumnium and corrosion will start. First signes are bubbling of the paint along sharp edges. I'm not a chemist, but the effect is the less noble metal (aluminum) slowly but surely erodes away to the more noble metal (SS). Remember the periodic chart of elements in Chemistry? Alumnium is lower on the chart than the allowys that make up SS. Zinc and Magnesium are even lower than aluminum, that's why the anode erodes first and protects the alumnum.
4. A galvonic isolator is really a filter that prevents your boats bonding system from becoming the ground from the AC system. It will allow low voltage (ie the 12v system) to flow to the ground, but prevents higher voltage. If there is a problem then the reverse polarity indicator should light (meaning the AC system is trying to ground to the boat not the shore system). Without it, if the AC system grounds to the boat then you will have a major corrosion problem with all underwater metal. Your boat could also become the ground for other boats around you. This will corrode underwater metal in a matter of day/weeks not months. All boats with AC shorepower should have a galvonic isolator.
5. You didn't say if you have a SS prop - if you do that is probably the source of the corrosion, BUT I would expect the corrosion to be limited to the area around the propshaf, not the gimbal. Make sure you are using the right anodes, they are all in place and that the ground wires that connect the drive and gimbal houseing are in place. If you have an aluminum propeller and are seeing significant corrosion I would say you have a different issue - I no or non-functioning galvonic isolator and either the dock or a neighboring boat is the source of the issue. Especially if you are near a metal hulled boat, a sailboat or a metal seawall.
There are others on this board that know more than I do, but I think I got the basics.
Bottom line, with an Alpha I you should not have an issue with corrosion - it is much easier to control than on a duoprop BIII.