After reading this, doing some research, and gathering information, I purchased an action camera. No, not a GoPro because I do appreciate having my arms and legs. I researched the off brands. I settled on the GitUp Git2 Pro. SJCam, GeekPro, Firefly, and a list of others were considered. These are all GoPro Hero4 equivalents for a fraction of the price. I received it yesterday, did some short videos in the house, outside, and in our pool. I was shocked at the quality and colors it produces. For $100, I was skeptical on what I would get. Turns out that it produces a great picture and video.
1. No, this will not replace the quality of my $3,000 DSLR setup. However, I would not risk that setup with an underwater case either.
2. With the cost savings vs a GoPro, I can purchase the other camera I want for travel and getting wet: Olympus TG-4. Yes, they do similar things, but the Olympus can take much better pictures. Plus I get the best of both worlds by having both cameras that are extremely small.
3. Here is a sample video. This was taken right after I received it in the mail. Everything on the camera was default. The day was completely cloudy and still had excellent quality and image clarity.