The ability is really strong, yes, but that's why they gave it to a shitmon. The question is of course, why not just give Araquanid a good stat spread instead of creating a godlike ability that will undoubtedly end up on some other Pokemon and make it broken beyond believe?
Other way around bud. They gave it stats to match its OP ability.
It's ability, unlike stats, makes it very powerful with Water attacks but nothing else. This gives him an interesting way of being efficiently hard hitting on physical and special sides but with the catch of only hitting hard with Water types moves. High stats gets rid of that idea and let's all of his moves hit hard creating a weakness/limitation to balance out his strength.