We decided with my wife to get a compact, waterproof camera and knowing how my wife drops everything (no comment), and that I have 2 boys under 2, I was pretty excited when I learned about the WG-1.
What I've read so far on the quality hasn't been great but we decided to give it a try and we have 30 days to return it if we don't like it.

First thing I have to say, the build quality is awesome, it is lighter than I expected but doesn't feel cheap at all, I just love it.

First 2 shots taken with K100D and FA77mm





About the photo quality, to be honest, it's better than I expected after reading about it. But frankly, it's best to avoid shooting above ISO200. ISO80 looks very nice to me, I know I can't expect anything like my K-r photos and I'm ok with that, considering the purpose of the camera.

Here's a photo of my son, taken outside with flash off.
1/40s f/4.4 at 9.1mm iso80


Here's a 100% crop untouched of the same shot:


I don't know about you guys but I'm ok with it.


Finally here's a couple macro shots of one of my son's car, the setting works very good and it's fun to play with it.


This one taken with the 1cm macro mode



Overall, I would say this is definitely an outdoor camera ( it is marketed that way for a reason! ), inside shots will get some nasty noise.
I just saved my ISO at 80 so I don't have to worry about it each time.
We have a few weeks to decide but so far, I think we're going to keep it.

[K-9]

Seems very capable as long as you know it's limitations.