This was bought for my son, who lives out in Japan, in March 2012. It was bought together with the Sports Pack and an 8GB card. He is a keen cyclist, so he started by mounting the camera, with the straps in the Sports Pack, onto his cycle helmet to record all his cycling trips. Then he progressed to using it, hand held if required, as a normal camcorder. It must be easy to connect, because he downloads almost all his recordings onto his YouTube account, then we can watch them all here in the UK. He has really raved about his Veho ever since he had it - such a tiny piece of equipment, but the results are absolutely amazing.
I wouldn't recommend that you use this camera, but it depends on how good you want the quality to be. An iphone 4/5 camera would do the job just fine. I would recommend this camera for skiing/snowboarding but not to teach dance lessons. The quality would look pretty poor if you are using a projector.
Yes you just use it like a digital camera. Plug it into a USB port and a file comes up on the desktop and inside are the UVI files that you can lift on to the computer and play back with Quick Time. Couldn't be easier. Of course you don't get top quality video but they are fun and offer a new perspective on life! There is no viewing screen so you don't know what you are taking but again that's part of the fun.
Not sure about splash proof but if you are planning on going near water at all the waterproof casing, for me at least, was definitely worth it. Makes it a little chunkier but still pretty small, and fab underwater shots from it. You can start and stop recording all the while it is in the case too which is handy.