I jury rigged up the helmet strap to work as a soft goodman handle and held it on top of my right hand, it worked pretty well. With the camera in the case and a bolt snap on the helmet strap it was probably pretty close to neutral or negative although I didn't let it go out on the dive so I'm not entirely sure. Its not too big though so if it is positive theres not a whole lot of lift. Its fairly easy to frame a shot.
If it is the case's lens that's causing the blurriness I don't imagine it would be too tough (for GoPro) to design a slightly different shaped lens (lens is user replaceable in case of damage) to compensate for the effect of the water. But I' not sure of the actual cause.
Above water its pretty awesome though. In addition to video, the 2sec interval camera takes pretty decent still pictures as well.