Not sure I understand what you are describing.
1) No way anyone would leave wood underwater in a pool. It's obviously a temporary form. Can't leave untreated wood as it rots, can't leave treated wood as the treatment isn't safe in the water.
2) Forming with wood is normal. While it sounds like it's reinforced concrete, which can be used to cantilever over a space, the description is hard to picture.
3) Especially since it sounds like one can swim UNDER the ledge, possibly getting stuck there. Plus it's a GREAT home to grow algae in.
4) Filling a space with concrete can be very expensive...and heavy.
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