I'm giving this camera 5 stars, not because it takes the best pictures of any camera I've seen, and not because it has more features than any camera I've ever owned, but because this camera survived surfing, snorkeling, a dusty ride on the back of an ATV, and being dropped from a zip-line in the mountains of Costa Rica (take a look at the video that was taken immediately after it was retrieved). For less than a hundred bucks I would not expect any camera, waterproof or not, to survive even half the activities I made this bad boy a part of.
As far as the camera itself, it takes decent pics in good light. It does not have a flash, so you won't get much out of it if used at night or in a dark room, but with the sun is shining and the picture taker facing the right direction, you can snap some really high-quality photos with this sucker. I got some amazing shots that my Canon Elph has yet to shoot.
The user interface is a little confusing to figure out because at first it looks a bit complicated with a bunch of icons on the screen, until you realize that it's really just a basic point and shoot camera and the icons are just there to let you know what you are working with (how many minutes you've been recording or what your zoom level is, for example).
It comes with a little bit of internal memory, but I recommend you pick yourself up a SD card with a decent amount of memory so that you don't have to constantly be transferring pics. If you're planning an long, active trip somewhere, the last thing you want is your SD card running out of memory right as soon as things start to get exciting (speaking from experience).
It takes really good video/pics underwater. And being underwater does not change or affect the mechanical functioning of the camera from my experience. I took more pics and videos underwater and diving into heavy waves in the ocean than I took in a dry environment. And the camera still works as good as it did the first day I got it.
I will continue to use this camera for all active outdoor photos until it can't take any more. And then I will probably buy another.
EDIT: Please note that the video that is part of this review is of much higher quality when watched straight from the memory card. Although it uploaded at poor resolution here and appears grainy and somewhat pixelated, the video is actually crystal clear - you can even see the ocean in the distance beyond the mountains. This camera produces much better picture and video quality than meets the eye!