OM Systems TG-7 - Initial Impressions

I recently picked up an OM Systems TG-7 with the intention to use it as an underwater street photography camera inspired by a summer book series I shot over the previous summer where I shot using an underwater film camera. The only issue is that I have the camera now, in winter so I can't use it as intended but I thought this would be a good time to get a feel for the camera but also see the image quality first hand.

The image quality from the TG-7 was something which was of concern to me. The OM Systems TG-7 has a 1/2.3 inch sensor which produces 12 megapixel files. The effective megapixels was not the concern, my concern was the sensor size, can something that small produce anything decent? I've used the TG-7 as a daily carry, getting sample shots to find out.