It is undoubtedly a high risk - high reward area.
People who want the extra challenge go there and reap its rewards. More money, better loot, extra obstacles on both land & sea. The harsh environment is made to be that way, the sea can't always be sunshine & rainbows!
Fortunately, small tips and time spent around the area will help alleviate a lot of the factors in play. Try to time the volcano eruptions. As soon as one ends, get in there, get your stuff and get out. Or anchor your ship at a safe distance near a rock/island formation with decent amount of cover if you can. This should solve the volcano demolishing of your ship issue for the most part. To piggyback on that statement; you're going to need your supplies in order. Plenty of bananas, planks, the works. Some people like to use their ship as weaponry. Cannon the waves of skeletons, but at the risk of your ship if a volcano erupts. Use explosive barrels, just be careful a skeleton doesn't get you before you get them. Another good idea is to rowboat in so that way you have access to easy in, easy out especially if it erupts and you have to throw your loot on the rowboat quick and not get hit or burned by the scolding waters. You get a good warning if the volcano is about to erupt; take the signals seriously. The geysers do a pretty good job at killing off the skeletons as well. Also in my experience, players out in that area are just looking to do their business. Met a solo (sloop) guy out there with no intentions of fighting (PvP) and was chill. That can't always be the case but just from my time out there, I've never had any other PvP trouble. Don't waste time when you're out there. Go for what you came for, supply up if there's time and head out. Lurking out there will inevitably give you a hard time. Ghost ships and Megs will spawn, but if you have your tactics and supplies in order then it should be a feasible task to manage. Take into consideration the ship you have and its advantages amongst the others. Whether that be speed or strength. Use those winds for speed, use those islands for evasion. Use those cannons and fire away. To each their own but again, risk & reward - like pirates! In my opinion it's a great place in terms of lore, loot, and gambling! Best of luck!