Take a look at the Fuji XP80 for extra features, built in flash, broader applications, lower price and richer Fuji colors. The XP80 is more of a hybrid between a GoPro sports camera and a handy general purpose pocket camera.
https://www.google.com/search?q=Fuji...utf-8&oe=utf-8
All sports cameras have their image quality and low light limitations, but they serve their purpose in ways you would not want to risk better and more expensive cameras.
In that image quality range, iPhones work good too. LifeProof is the "standard" for waterproof enclosures. West Marine has them next to the cash register for about $80
http://www.amazon.com/LifeProof-iPho...of+iphone+case
There are clones and other universal pouch options all the way down to about $8
http://www.amazon.com/FRiEQ-Universa...f+iphone+pouch