I have been using the Sea&Sea "DX" line since 2003, from the 3000 model to the 5000, all photos in my gallery have been taken with mostly the 5000 and a few with the 3. If you want to see what these cameras can do,
http://www.scubaboard.com/gallery/showgallery.php/cat/500/ppuser/24249
Remember some photoshopping has been done to most files; removing backscatter and bumping up levels mostly, but the basic shots are still very impressive for a "compact" camera.
I now own the 2G. Although I've yet to get the 2G in the water, I have been very impressed with the battery life, and many new features that the earlier versions did not have.
The camera it's self is smaller than the earlier versions, although the u/w housing is a little larger, but the "buttons and knobs" have been improved for better access, especially the shutter release that is now a lever rather than a button and seems to make the 1/2-way push for focusing easier.
So far, the pictures I've taken with it, in various modes, have all been very nice. I use it in my daily work to photo buildings for pre-construction documentation. The 12Meg pixle resolution is much noticable over the 5Megs and at the camera seems to capture color very well.
Look at the "Sea&Sea Society" sub-forum
Sea&Sea Society - ScubaBoard
more reviews and commentary on the camera have been posted there.