Hi,
I recently got a Panasonic Lumix DMC TS3 (just superseded by the TS4). I got it for several reasons, including for use while snorkeling. I wanted the waterproof feature so I wouldn't have to to the plastic bag thing to keep sweat out of the camera as I've done with older P&S cameras that I've owned. I am very happy with the image quality of the Panasonic. It's not the smallest camera but it's plenty small for a jersey pocket and it's a little heavy, I guess because of the waterproof feature. Olympus and Nikon make very similar cameras.