Well, I haven't taken it in the water yet. That may come this weekend or next. But the camera is well-built and the specs are great in terms of ruggedness - as good as the latest tough cameras. Response seems just fine and the rear LCD features very high resolution. I think photo quality is fine for its intended purpose - action snapshots taken outdoors. Pixel-peepers are advised not to apply. The only thing to keep in mind is that the lens is the older, slower, folded-optics design that Olympus had for all of its tough cameras before the TG-1 and TG-2. We're talking 28-140mm and f/3.9-5.9. Frankly, I don't think the TG-1 and TG-02 offer a better sensor or image processing. It's just that they offer f/2.0-4.9 (at 25-100mm) so one can keep the ISO settings lower.
But, as I said in earlier posts, one does hear occasionally about ruined cameras due to accidental leaks - whether caused by user error or camera defect. For that reason, I am unwilling to spend $300-$400 for a tough camera. The TG-820 will do just fine. Mind you - don't confuse the 12mp TG-820 with the 14mp TG-810. The 820's lower resolution and BSI sensor translate into better performance and less noise at higher ISOs. But I would still say the camera is fine up to ISO 800 with ISO 1600 to be used only in a pinch. Forget ISO 3200 and 6400 unless the alternative is not getting the shot at all. And remember: The TG-820 doesn't have GPS or mapping.
All in all, if you demand ultimate image quality in a tough camera, try the Olympus TG-1 or TG-2, and possibly Panasonic's TS5. If you really want a well-implemented GPS, mapping, etc, then the Nikon AW100 or AW110. But if you want to keep the cost down while retaining toughness with acceptable-to-good image quality, a leftover TG-820 can't be beat.