As a camera lover, I like and have multiple interesting and good looking cameras. In general, I am not a big fan of compact digital cameras for various reasons. But I would highly recommend getting a waterproof camera.

Nowadays, a lot of people are aware of action cameras like GoPro that you can take still images and HD videos by wearing or attaching the camera while you engage in activities. Though not as compact as GoPro, there are "action" cameras with water proof (to certain depth), dust proof, and shock proof (from certain height). These are still compact digital cameras; however, these cameras are extremely useful, especially in and around water or engaging in activities where you do not want to bring heavy equipments.

I have been using Pentax Optio W90 for the past 5+ years. I got interested in water proof cameras when I attended a presentation by Pentax. As a father of active boys, I thought it would be great to be able to take photos while my kids are in the water. Pentax Optio W90 has been a wonderful tool to record underwater activities for my kids. While I am not too fond of the image quality in low light/cloudy/indoor situations and the shutter lag, it has captured great memories with my kids.

I would recommend on spending little more to get a good quality camera which you can get for less than $350, but not more than that. You get what you pay for. But with water proofing, I think the "life time" of these cameras would be few years. My Pentax Optio W90 failed to seal out water after 5+ years a couple of weeks ago. $350 every 5 years or so? I can live with that.

Pros:

• Relatively cheap
• Relatively good/tough build
• Good design

Cons:

• Picture quality, especially in low light situation
• Waterproof does not last long.  Few years and it wears off.

What I would recommend is buy the most advanced/newly released waterproof "tough" camera, such as Olypus TG-6  if you intend to use mainly for photos and go for GoPro or similar action cameras if you are more into video.