The moon's gravity does not differentiate between water and Earth mass. The moon would still pull on the Earth the same whether it was dry or covered in water. The oceans don't weaken the grip gravity has on the Earth.
I disagree because distance also has an effect on how strong gravity is. 7 miles difference would be less pull. And the water just might affect that as well. Has there been any tests done at the bottom of the ocean to confirm the moon's gravity pull is the same as on the surface?
Or would it continue to rotate. It's been a long time since I took a basic mechanics class.
Unless the actual speed of orbit of the moon actually helps the wobble keep going?