You are now entering Go Pro country.

Interesting looking camera but a tad big/heavy for kites? Looks like a great bit of kit for diving (60m!) tho.
Just got a Lumix TS2 (US vs of FT2) and am super stoked with it in and out of the water. Go for one of those if you want to mix happy snaps with aqua fun.
Haven't had the opportunity to use with my cam rig yet but the quality of vids (720p and AVCHD lite) on the Lumix in other situations is outstanding. Oh - am yet to test but the US version of the Lumix may be limited to 28mins vid at a time. Not gonna bother me much tho (less to view/edit later).
BTW I would possibly have gone for a GP but they don't have a screen (yet) etc so are not dual purpose. Have not heard a bad word about GPs for sport/kites only function.