I was originally leaning towards the 7r, but having 6m in a HT isn't going to be as useful as having 220 would be, and I would much rather have 5w on 220 than .3w that the 7r puts out (if that's all you're going to give, why even bother?). Besides, a 6m antenna should properly be 1.5m long if I'm calculating right - way too unwieldy for a handheld unit. The 8r at least gives 1.5w on 220, but that's nearly $100 more for that extra 1.2w. I'd really have to stretch my budget to make that work.
Yes, the submersible feature is nice, but I figure if I drop the radio in water that I can reach, it probably won't be submerged more than a few seconds, which shouldn't prove fatal to a splash-resistant unit (the Kenwood is mil-spec for light rain); if I drop it in water deep enough that I can't reach it, it doesn't matter if it can be submerged for 30 minutes or not. The best solution is to not go around dropping my radio into any lakes or rivers I go near.
One feature on the Kenwood that I haven't seen on any other HT is its receive range: it can receive up to 1300 MHz, while most others receive up to 999 MHz that I've seen. Not sure how useful that would be in practice, but certainly wouldn't hurt to have it.
Not saying I won't end up with the 7r; it's a heck of a nice unit. But as of now, it would seem that the Kenwood would be of more use in my area. Both are highly regarded from what reviews I've read. I don't think I'd go wrong either way, but I still have plenty of time to make a decision yet.