I thought you were talking about the TG-2, sorry.
I own the OM-D, and you're right, it is not submersible. But it does great in the rain and as long as you have one of the weatherproofed lenses, it does well getting wet. It wasn't meant to be submersed. (unless you get the waterproof housing)
And for what it can do, I don't think it is expensive at all. It's basically a high quality DSLR equivalent with micro-four thirds sensor. A pocket cam doesn't even remotely compare in quality of images or control. It may not be as light as a pocket cam, but it is half the weight of a typical DSLR, very compact, and gives you similar quality to a DSLR. After all the different digital cameras I've used over the years after my earlier love affair with manual film cameras, it is the first camera that has brought back the joy of getting out there and losing yourself in taking photos. I hated the slow focusing, slow reading, terrible low-light abilities, fast battery drain, LED screen viewing, clumsiness of all my compact digicams (though I still very much love my Ricoh GXR, in terms of stunning image quality and absolutely beautiful UI). The size and ability of the OM-D is the perfect compromise.