I have been through MANY digital cameras over the years, since the old Casio QV10 back in 1995. That was a little underwhelming with 320 x 240 resolution and battery life....well, shorter than you can say "battery life"! However, because it was digital and didn't need film, I took many pictures I never would have taken. It was worth it.
My mission this summer was to look for a camera that could replace my trusty old Canon S2IS. I loved it, but it was too big. I also wanted to be able to scuba dive with it.
I narrowed things down to a Canon SX200IS link
or Panasonic Lumix ZS3 link
Since the Canon does not have a factory underwater/marine case for Scuba, I had to go for the Panasonic. What a great choice that was! Its a super camera, both in intelligent mode as well as the more advanced modes.
Now I need to order the Panasonic DMW-MCTZ7 Marine case.
Note: Aftermarket third party batteries for the Panasonic ZS3 will ONLY work with Firmware 1.1 or earlier. Beware if you buy a 'cheap' battery!