First of all, I realize that in shopping for a digital camera for use underwater, the first thing I need to do is find an available housing. That being done, what else should I consider?
A great site for housing availability is Digideep Website
I used to try an keep up availability myself before this site. It was way too hard.
Considerations besides shutter lag times include, but not limted to: 1) battery consumption 2) macro capabilities (does it have a macro mode) 3) Full manual control 4) Media type (compact flash has larger card capacities) 5) zoom (3x is plenty, 10x can cause difficulty) 6) flash (does it allow attachment of a PC cord or have a hot shoe)
Some of these aren't all that important for most people. Just advantages and conveniences. Number 3) is critical, but generally found on all 4mp cameras and above.
There are digital SLRs, which are expensive... are there really much difference compared to the mid-range products?
Yes and no. It's a long discourse. Some of us already own SLRs and have investments in lenses. We shoot a lot and print big. We are good at rationalizing the need for a d-SLR. We are used to shooting an SLR underwater, the shutter lag of consumer cameras drive us nuts. We are used to lugging a big-ass housing around. We shoot topside as much or more than underwater. We have to have THE best. We have $4-6,000 to spend and still afford to dive.
If this doesn't describe you, then it's not worth it.
What models would you recommend?
I've seen good results from many cameras. I just outfitted someone for a Nikon CP5000 in an Aquatica housing, an Ikelite DS125 with smart charger and TLC arm set. The whole system, including the camera cost around $3000. I consider this the best setup out there. The camera has great macro capability, can use a strobe in TTL mode via synch cord. The housing is fantastic.
I've seen great results from shooters with a $500-$600 Olympus camera, a plastic $250 PT housing, tray, cheap strobe are and a strobe with a slave function or fiber cable. All this for around $2000.
You can go even cheaper, even under $1000, but then you start losing something in the equation. It depends on what you want out of a sytem. It's a personal choice.
For camera reviews look at these two websites:
DP Review
Imaging Resource
And finally, more important than the make and model of camera is:
1) Knowing how to use it
2) Knowing how compose images
3) Dive skills