I had good results with my Nikon One Touch (LF35AF-3) so I picked up the underwater version (Action Touch LF35AW) to see how that one works. I use my Nikonos in bad weather, and the Action Touch seemed to have some features that the Nikonos does not have.
Handling: The Action Touch is lighter than the Nikonos and heavier than the One Touch. The One Touch feels like cheap plastic to the Action Touch. The Action Touch has some heft to it that makes it feel like a more substantial camera. Kind of like the One Touch camera & 35/2.8 lens in more of a Prosumer package.
I have one (not used for many years). My snorkeling ability was a limiting factor to using it effectively! It is solid and the lens seems good out of the water.
I've looked at Action Touch but as I have Pentax and Konica weather resistance and a Minolta duel that is good to about 10 feet underwater that I use in the rain so far I have passed. Might reconsider if I can find one at a good price.