Cyber-shot TX10 16.2 MegaPixel Camera - Green

First, some background on what I was looking for: I'm a casual photographer. I wanted a waterproof camera which would produce high-quality photos in all settings (indoor, outdoor, and underwater. My intention was to completely replace my 7.2MP Sony DSC-W7, which I LOVE. I wanted to add the underwater feature without compromising on other features. I did not want to spend more than about $400 for everything (camera, two 8GB memory cards (Class 10), two extra batteries with charger, and float strap. This left me with about $340 max to spend on the camera itself. I do NOT know a lot about photography. Terms like "ISO" and "white balance" are foreign to me. I like to use pre-programmed scene modes and auto features. I enjoy digital scrapbooking and I frequently zoom and crop. It takes a very high quality photo to crop out/enlarge a small figure without too much distortion.
I began my search online and spent about 6 hours researching the cameras in my price range. The cameras I focused on most were the Canon D10, Sony TX10, Panasonic TS3 (sometimes referred to as FT3), Olympus TG-810, Olympus Tough 8010, Fujifilm XP30, and Pentax WG-1.
I eliminated most of these options rather quickly based on their reviews, overall ratings, and the quality of photos that I reviewed. I narrowed my focus to the Canon D10, the Sony TX10, and the Panasonic TS3.
I wanted to love the Canon D10, since it seems to be the overwhelming fan favorite, but I ultimately decided that it wasn't going to be a good fit for me. The price of the D10 is similar to the Sony and the Panasonic, but it's a 2.5 year old model which doesn't have HD video. The photo quality seemed about equivalent to the other two, so I decided to only focus on the two models with HD video.
I would have been completely sold on the Sony, since I've used only Sony cameras most of my adult life and I've never been disappointed in one; however, there were some notable deficiencies which most reviewers found with this model (detailed below), so I was a bit hesitant to take the plunge. The Sony was also priced near the top of my budget ($329), whereas the Panasonic was only $275 at Amazon.com. The Panasonic reviews seemed to all be very positive, with the only significantly commonly-noted problem being lower quality indoor photos. However, all of the indoor, outdoor, and underwater photos that I reviewed online looked very good.
I decided to take a chance on the Panasonic TS3 and I really, really, wanted to fall in love with it. I ordered it from Amazon and they delivered it the next day. I wasn't blown away by this camera. The outdoor photos were good. The video was very good. The underwater photos (taken in my large fish tank) were very good. The indoor photos were POOR. I decided to order the Sony TX10, hoping that I'd see better results. I ordered it from Amazon at 9pm that night and it was delivered at 1:00pm the next day (gotta love Amazon!). The photo quality of the Sony camera is outstanding. I'll be keeping the Sony TX10!!! For some people, however, the Panasonic might be the better choice.
First, I'll provide my overall recommendations, then I'll add in all of the detail:
BUY THE SONY TX10 IF:
You value the quality of the photos/video above all else.
You like touch screen devices.
You don't plan to dive lower than 16 feet.
You don't care if you can't adjust your settings (other than zoom) underwater.
You want a VERY small camera.
You always use a wrist strap.

BUY THE PANASONIC TS3 IF:
You can live with grainy indoor photos.
You don't typically enlarge your photos to 100% (because they will be distorted).
You want a camera with GPS.
You plan to dive deeper than 16 feet.
You want a larger (but not too big) camera.
You're looking for a less expensive option.

NOW FOR MY DETAILED COMMENTS ON BOTH MODELS:

PRICE - The Sony is +/- $50 more expensive than the Panasonic.
SIZE - The Sony is significantly smaller and lighter than the Panasonic. I don't think one is better than the other, per se. It's a matter of personal preference. The Sony will fit in most pockets. The Panasonic probably wouldn't.
RUGGEDNESS - Both cameras are rated very well in this area. I haven't "tested" them, but it seems like the Panasonic is built a bit tougher and would be less likely to get destroyed in a fall. Rather than test this feature, I'm going to just trust the experts that either one will hold up well if dropped.

UPDATE: I also posted this review on another site and I recently added photos to it. Seeing is believing! [...]

I bought the Sony TX10 for my Tahiti trip. The quality os the photos weren't great. Most images were dull and desaturated. Lacked color and contrast. My previous DSC-N1 (2005) produced better results. But here's the worst part: the camera died the second time I used it in the water while snorkeling. I didn't lose the pictures I had already taken up to that point, but had no camera for the rest of the trip... Sony won't refund my money or fix the camera because water damaged it.... Isn't that why we buy a waterproof camera????

This is my 4th Sony Cyber-shot camera, pricey but worth the investment. I just purchased DSC-HX5VB when i went on vacation on March of this year , it's a good camera but when i saw this DSC-TX10 @ Amazon & said will be available by April, I couldn't wait to get one. This is the best one! Everything about this camera has floored me, the video quality is even better. I'm not a pro but my friends were so amazed w/ the quality of pictures, it's no brainer, just shoot & the camera does a great job! I would recommend this camera to anyone, well worth the money spent. I got a carrying case to protect my investment. Thank you Sony, I am very pleased, well done!!! Thanks to you too, Amazon!