I have an Olympus C-8080 and am considering upgrading to a DSLR. In looking at various models in the camera shops I like the feel, size, and responsiveness of the Canon EOS 400D from an above water point of view. However, it appears most commentors in this forum have chosen the physically larger and generally more expensive models from Canon or Nikon. For underwater photography, what are the advantages of these models over the 400D?
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DSLRs
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I have an Olympus C-8080 and am considering upgrading to a DSLR. In looking at various models in the camera shops I like the feel, size, and responsiveness of the Canon EOS 400D from an above water point of view. However, it appears most commentors in this forum have chosen the physically larger and generally more expensive models from Canon or Nikon. For underwater photography, what are the advantages of these models over the 400D?
The age old question...
Before considering which SLR to look at, you really need to decide if the move is right for you at all.
There are a few really basic considerations.
Do you want to shoot both wide angle and macro on the same dive? If you really like this ability, the SLR will be frustrating, as you must pick a lens on the surface and live with that choice till the next dive.
Do you want a small rig that is easy to travel with? The compact camera's are WAY smaller than a complete SLR rig. Even the smallest of SLR in a housing is at least twice the size of a compact.
Do you want to take a lot of snapshots of your diving experience or are you looking for the "perfect Photograph"? The compact cameras with their built in lens will limit you in optical choices and quality to some extent. The SLR is made with interchangeable lenses of various capabilities in mind. Sure, there are add on lenses for compact housings, but the optical quality of these will not (in most cases) match a high end lens for an SLR.
Do you have a very specific or limited budget for your photography? Fully outfitting a compact camera for underwater use with strobes is by no means inexpensive, but it is substantially less than a fully outfitted SLR rig. Not only are you buying a camera and housing, you also need a variety of lenses, gears and ports for these lenses, etc.
Once you go through this list and decide you must have a dSLR, then the fun of choosing which manufacturer, price-point, etc can begin.
This is where we can really help you spend your money!!

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I couldn't have said it better Richard.
About your original question, the 400D is a good camera, but it is very new in the market and few manufacturers produce housings for it. That's probably why you don't see many people using it underwater (yet). There are a lot that use the 350D.