My first camera was a Nikon SQ, generally speaking the same kind of design as this one. The form factor is hard to beat for a compact, and being able to use the camera from the waist or hip gives me at least 1 stop of "natural" IS. The camera is also so compact, when folded, that it can be slipped in any pocket.
Make such a compact waterproof up to 10 meters and I'll grab one in a blink!