take it out/joke wore thin

[Vladv1]

"But he could be fun too. He shared a room on the road with Kovac, and the pair would often bring back girls who they would f*ck lying side by side on the twin beds. It was Imlah though who became Malcolm’s new best buddy when he discovered the joys of dope smoking. The two would hire a fishing boat and "take it out to" Palm Beach, north Sydney. Kovac: ‘I said, “F*cking hell, Malcolm, you’re a f*cking hippy!”’ The joke wore thin though when the pair began smoking before gigs, causing the set to slow down and become appreciably heavier. In response, Kovac started taping the gigs, ‘so whenever they were stoned I’d point it out to them".
Mick Wall, "Hell Ain't A Bad Place To Be".

1. Does "take it out to" mean to leave for Palm Beach?
2. What does "the joke wore thin" mean here in other words? What does it refer to? What joke?

 

[emsr2d2]

1. Does "take it out to" mean to leave for Palm Beach?

It means they sailed the boat to Palm Beach. "Out" refers to them taking it "out to sea" from wherever they started.

2. What does "the joke wore thin" mean here in other words? What does it refer to? What joke?

The joke, which it what it was when it was said, was Kovac saying that Malcolm was a hippy. The joke stopped being funny (wore thin) when they started actually behaving like stereotypical hippies (by smoking marijuana).