Tech Talk - Camera choices

I need a new camera.  It was reinforced during our trip to Yellowstone.  Mine is 8Mp and is very slow to write to the card.  I've been debating a new camera and here are the choices I've come up with.  Of course, they're out of budget right now unless I can find a super sale, but at least I can think about it.

Do I want a "normal" or a "rugged/waterproof" camera?  I'm torn on this.  I love the idea of being able to swim with my digital camera to get pictures, or to take it on my next mud run.  My options, though, are limited and picture quality isn't always as nice as a nice camera.  If I go for a waterproof, I'm thinking I'll go with the Nikon Coolpix AW110.  It has the best ratings from Consumer Reports and the feedback I've found on various sites gives similar results.  It runs around $200-350.

If I go for a "normal" camera, I want something a step down from what my husband has.  He has a nice Canon Rebel that allows you to change lenses, etc.  I don't need anything that nice, so whatever standard lens it has needs to be enough.  I'm also not always good with manual settings, though I'm getting better.  I'd love the option for 'auto' on there.  I also want an optical zoom and at least 12Mp, prefer 16Mp photos.  From what I can find, the Panasonic Lumix may be the best bet. Unfortunately for me, depending on the model, that one runs around $800-900.

So, while I sit back and think hard about what really matters when it comes to me taking pictures, if you have any suggestions about cameras I'm more than happy to hear them.