Which review were you looking at? It has two macro modes. The flower mode lets you focus to 8cm and magnifying glass mode which lets you focus to 1cm.
From sony's website.
http://www.sonystyle.com/is-bin/INTERSHOP....roductSKU=DSCT1
• Minimum Focus Distance: 19.7" (50cm)
• Macro Focus Distance: Selectable 3.1" (8cm), Magnifying Glascant s Mode 0.4" (1cm)
The T1 does not have manual modes but that dosent mean that you cant use a strobe. It just means that you cant use the stobe in manual. It will work fine in TTL. Although I must admit you will never get a stobe to work in the super macro mode with the camera 1cm from the subject. (Not that you need a stobe at this distance)
I got a chance to use this camera both above and below the water a few weeks ago. I couldnt get over the macro mode. It could take close ups of smaller subjects than you can even with a SLR.
The diver in the picture in this post is holding a T1(without stobe). The camera is so small it it almost completely hidden behind his hands. It would easily fit in a BC pocket.
http://wetpixel.com/PNphpBB2-viewtopic-t-6376.phtml