MikesTooLz
iPF Novice
Waterproof is a lot harder than you think. It has to take hundreds of opening and closings to be practical. There is no way to use it while it is in the case, so it makes you wonder why. There are a lot of waterproof cases that will work very well, but they will be bulky. It goes wih the territory. If all you are worried about is splashing water, any heavy duty ziplock bag will do the job. If you plan on going down the river in a raft or canoe, get a pelican case for it.
OtterBox did have an ARMOR series for the original iPhone that was waterproof, and they currently also sell an ARMOR case thats water proof for the iPod Touch. I dont know why you say its not usable, it sure is usable.
[ame=http://www.youtube.com/watch?v=z-eVNO3tmgs]YouTube - OtterBox iPhone Armor Case with Waterproof Headphones[/ame]