Feraligatr is certainly not outclassed by SD Kabutops. First of all, it resists both Aqua Jet and Bullet Punch, so whether you are using it in UU or OU, respectively, it is less susceptible to priority. Torrent boosts Aqua Jet to 90 base power, which is fairly powerful(just as powerful as Scizor's Technician Bullet Punch). While situational, on an average team it is certainly more valuable in OU than Swift Swim. Oh yes, let us not forget that Feraligatr can take Thunderbolts, who has 85 / 83 defenses, unlike Kabutop's shitty 60 / 70. In reality, Kabutops has great dual STAB, but weakness to Earthquake + Close Combat, neutrality to Aqua Jet / Bullet Punch, more situational ability, less bulk(yes, on both sides), Ice Punch > X-Scissor(Venusaur, Torterra, and Roserade come to mind when I think grass types in UU), all mean Feraligatr is easily as good as Kabutops, and for many teams, better.
EDIT: Oh yeah, Mach Punch weakness as well. Totally worth it when Hitmonlee outruns you...