Seawater is actually extensively used in some pacific islands (Marshall, Nauru, Kiribati). The water is reticulated to HH and the raw sewage is discharged into the open ocean, after the reef. Advantage is that it saves precious freshwater in places where the only source of water comes from rain.
Saltwater pump are expensive tho and the system needs quite a bit of maintenance. It is obviously a concern for the environment, although if the system is well designed (the sewage is diverted away from the reef and within offshore currents), risk of coastal/reef pollution are limited (but not avoided).
Hope this help.