So...is a ship an item?
Yep, you'd have a bunch of people, furniture, etc floating around in the air where said ship/wall/building should be (a rather good give away that something is amiss). I think jdales comment is a good
base-line... if taking it apart would damage it then it's 'an item'. Basically, the way I look at it, the real difference is that Invisibility has a radius and Unseen does not.
So why not a person and their clothes and gear?
Mostly, because of this...
Closed Essence: Invisible ways.
2. Unseen I — A single object is made invisible (1 garment, 1
naked body, etc.); until 24 hrs pass or the object is struck by a
violent blow (being hit by a weapon, falling, etc.) or the object
makes a violent move (i.e., an attack).
4. Invisibility I — As Unseen I, except everything within 1' of the
target is invisible as long as it is within 1' and none of the Unseen
I termination conditions occur. See Section 7.1.10.
If 'unseen' makes everything on an entire person invisible using a lower level and more available spell (Closed spell list at 2nd level) than invisibility (same closed spell list at 4th level) then why is there an 'invisibility' spell?
Your outlook on it goes in the other direction however. Would you let someone make their weapon invisible with unseen? Because technically the blade, hilt/pommel, and whatever is wrapping the grip are separate. Would let them make a simple single arrow invisible with unseen? Because technically the tip, shaft, and fletching are all separate.
Now, the information given on how Invisibility and Unseen (7.1.10) are a bit unclear when it comes to Unseen.
"Only objects/beings totally contained in an invisibility radius at the time of casting become invisible; such an object/being would become visible
upon totally leaving the radius; such an object/being would become visible upon violating the normal Unseen/Invisibility restrictions (e.g., attacking, receiving
a violent blow, etc.), but the other objects/beings associated with the radius would remain invisible."It really only talks about Invisibility. It seems to only mention Unseen because of the rules that apply to breaking it.
So, if you turned a ship "Invisible" I'd say it's all invisible (either anything contained within the ship or, at worst, anything touching any part of the ship/or within 1" of it). If you cast 'Unseen' on a ship, I say only the ship itself would be, leaving everything not considered a 'part of the ship' visible. You'll have people argue over if the sails and ropes should be visible... but we go back to jdales comment imo... without sails and rope the ship (the item) would not function as intended.
Edit: Shorn's outlook shows how we interpret the rules. I believe that Unseen was not completely considered when writing the rules he (and I) are quoting. So the rules saying unseen is the same as invisibility in one place, then in another place we find rules that potentially only apply to invisibility, we inadvertently given unseen more power than it should have.