Another perspective:
Have you identified what was causing your problems with the Oly SP-350? Why couldn’t you see the LCD screen? I believe that the SP-350 is used by a fair few u/w photographers, who presumably have either found ways around the problems you have, or didn’t have those problems.
It seems a bit odd to me that you couldn’t see the LCD screen: was the screen too small, not bright enough, not sharp enough? If the screen was too small, or not sharp enough, then perhaps another camera with a larger/sharper screen would suit you better. If it wasn’t bright enough, then perhaps there is brightness setting you can adjust, or perhaps you could attach some sort of shade to the housing to prevent glare from ambient light. In any case, if brightness was the issue, I would have thought that you would have experienced similar problems topside as well, as there is generally alot more ambient light topside than underwater.
Please don’t take this the wrong way, but how is your eyesight? Perhaps your eyes are having difficulty focussing on near objects underwater, and if so, perhaps a mask with a prescription lens might help.
Point and Shoot cameras are notorious for slow autofocus, and dSLRs are much better in this regard. However, I have encountered alot of u/w photographers using Point and Shoot cameras who do not use the pre-focus feature (i.e. half press the shutter button until the camera achieves a focus lock on the subject, then complete the button press to take the photo). Pre-focus gives you a chance to check that the camera does actually achieve a focus, and also what it has focussed on. If you just press the shutter button all the way, the camera will try to focus for a time, and then if it can’t get a focus lock, will just shoot at some (effectively) random focus point, which typically results in blurred images.
I don’t want to put you off getting a dSLR rig - in most ways they are superior to Point and shoot rigs, however, I think the problems you describe with your camera may have solutions in adopting a different usage pattern, and also I’m not sure that you will find a dSLR viewfinder easier to use than an LCD screen (of course, as Drew mentions, the Canon 450D / XSi has liveview, so you could use the LCD screen to compose your shots on this dSLR, although there are some limitations that apply, as Drew explains.)
Hope that helps..