If the vessesl is not engaged in fishing, it is deemed a power driven vessel under the rules and a sailing vessel has right of way.
This is a false statement.
You are correct that the lobster boat in this situation had no special privileges and was the give way vessel. She was legally obligated to stay well clear of the sailing vessel.
You are incorrect in stating that the sailing vessel had "right of way". That phrase does not appear in the rules except ONE situation, downbound on the Western rivers. That was not the case here.
The sailing vessel in this case was the stand on vessel and was OBLIGATED under the rules to MAINTAIN COURSE AND SPEED unless it became necessary to depart from the rules to avoid a collision.
I and others have already pointed out that early action to avoid this whole encounter would have been the best approach from both sides.
It's also been pointed out that in reality not everyone follows the rules.
But if you're in a collision, and you try to claim "right of way" just because you were under sail, you will certainly be found at fault to some degree.