Personally I like rugged cameras and perfer to have one in my pocket over my Canon DSLR. I have had a few over the years and find the Panasonic Lumix rugged to be one of the best for photo quality (that is what counts right?). Here is the basic model with wide angle and water proof to 16' (personally I cut these estimates in 1/2 to be safe).
16MP $140 so it won't break the bank and if its damaged its not that big of a deal.
built to survive a drop of 5' (1.5 m), it's waterproof to 16' (4.87 m), dustproof, and freezeproof to 14°F (-10°C)--as close to indestructible as a compact digital camera gets
My preference includes GPS and its more rugged:
12MP but increased protection
I have also had Olympus "tough" but they really struggle in low light... but my next rugged will be this camera or the replacement to it..
One thing that you do give up with the rugged cameras is the picture quality over a similar priced point and shoot but what it save me in damaged cameras its well worth it....