It's a matter of personal preference really. Most people prefer griptape because it feels more like a skateboard on the water and arguably gives you a little better control. I've ridden both but griptape by far feels better under my feet. In my opinion, foam has kind of stuck around for those who casually enter the sport and ride without shoes; it makes for a good board to have on the boat for the end of a day of wakeboarding and everyone can hop on regardless if they have shoes for it or not. Not a lot of people who seriously ride use foam, but there are a few who still do. It really comes down to what you like to ride.
You'll have no problems replacing the foam with grip. Just use a hair-dryer to heat up the foam until the glue starts to melt and peel off slowly. Clean the remaining glue the best you can and then stick the tape on like you would a skateboard. You'll probably need to get 2-3 sheets of regular skateboard griptape at your local skate shop to cover the whole thing.
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