Bionic Modeler, you have it right!
Actually they did have some paddle that had a "spider" gear and hinged paddles that would keep the paddles vertical the whole time it was in the water. The wheels were a lot more efficient and as a bonus for blockade runners, this type of paddle wheel was far more quiet when entering the water. But, they were also more expensive and required a bit more to maintain their proper function. Also, a single shot could dislodge the hole thing, where as in a standard wheel, many paddles needed to be shot away to ruin it's function. So for small coastal and river steamers, and Military steamers, plain wheels were in favor. But for ocean going ships, the spider gear paddles were popular.
CT
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