If I recall correctly, at an undistorted scale, the water would be so shallow that surface tension and viscosity would dominate, so the depths are exaggerated to keep the flow realistic.
More specifically, tidal flow obeys Froude similarity, not Reynolds. Matching the model's Froude number to the real Bay's requires enough depth for gravity waves and tides to scale correctly, which the vertical exaggeration provides.
But the distortion makes the flow too efficient, so copper strips are added throughout to achieve the right frictional resistance.
Yes. Another technique was to use alcohol rather than water since it has lower surface tension, but that was only workable for smaller models (which were usually enclosed).
I think a model this size full of alcohol would also be quite hazardous for several reasons.
Even if it wasn't a large size, it likely wouldn't be great. During my PhD on sprays, I did some (unpublished) experiments using isopropyl alcohol to reduce the surface tension. The nozzles I used were around 1 mm in diameter as I recall. I did not anticipate that the room would fill up with isopropyl alcohol vapor and (probably) tiny droplets. I wore a mask and maybe left the room while each trial was running. Breathing that likely wasn't great for my lungs.