The biggest advantage of the small compact setups is their macro feature on top of wider angle. I started that way (various IXUS and S90/S100 models) but it has been very much a GAS issue for me. What the new TG7 can do is pretty remarkable for the price!
Didn't know what TG7 was, I went looking; I honestly don't find appealing as a diver. Its max depth is 15m, which is not enough for a tank dive (and I wouldn't bring it more then 8/10m deep just to err on the safe side), so it needs a proper housing.
Then, if I have to buy the 40m housing, I'm pretty sure (it's years I don't keep informed on compacts) there are better "normal/non-tough" cameras for much less money then that, it looks very expensive and partially low res (it has the same 12mpx my A650IS had in 2008). But I appreciated it seems to have many accessories.
Not my cup of tea, but I admit I didn't went too deep, just hanged on the Oly website for less then 5mins.
(but I've to partially contradict myself; I remembered I actually have a GoPro8 with the UW housing, so I actually DO have a dive camera; but of course the quality it's pretty awful per se - I tested it in the field - and the lack of a built-in flash doesn't help. But of course a GoPro is meant to do different things then scuba dive macros).
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