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I'm a pretty strong proponent of Canon's underwater cases for their point and shoots. You can pick up a UW case for most of their (non-SLR) cameras for about $130-170 and they work down to about 100 feet - way more than enough for my snorkeling uses.
The best part is that Canon makes some fairly high end P&S cameras. I've had a G9 with a UW case as my dedicated watercam for a couple of years now and it works quite well. Been in ocean at least 20 times and never flooded. And I still have a decent 12 MP P&S to take out of the case when I don't want to carry a DSLR around with me.
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