Earlier quoted context omitted.
Well one factor would go up (planets with life 1>2) and another would go down (planets with life developing intelligence 1>0.5), resulting in a wash. It does move towards giving additional degrees of freedom on those terms though, making the equation as a whole slightly less pseudo-science.
Depends on their intelligence if we find them, right? They might be intelligent and tool-using, but hampered by their aquatic origins.
Maybe it's not atypical that life-bearing planets don't end up producing a technologically advanced one. The Earth is an example of how a planet can have complex animal life for hundreds of millions of years without any of them being able to invent cake, and habitability is relatively temporary.