Don't bother with the "rugged waterproof" cameras. For the same price and size, you make some significant compromises in image quality.
There are some pretty crappy armored cameras out there, I am very happy with my Panasonic TS2 (now replaced by the TS30). The kids use it in the pool every summer and last week my niece had it in the fraser river. She didn't capture any fish tho.
It fits in a shirt pocket and can take a beating. A couple SD cards and spare batteries and you are good for at least a week. These have come way down in price.
For less abuse: I've been eyeing up the Nikon P900. I think it is the best value in its class.
Vendophobia - Fear of vending machines