Without any restraint on the inner edge of the o-ring, won't it get pushed into the case? The bit around the outer edge will be exposed to the full external pressure.
That's a very good point and you are correct, however the area of the face is huge compared to the area of the outer edge of the o ring so the force squashing it against the edge of the tube is high compared to the force trying to push it into the tube. All my units have a top hat but I was thinking about how you could forget about the machining - I should have thought about it some more before posting. I've got several test units so if I have time in the next day or two I'll make a flat face without the top hat and test it to 60 metres to see if the o ring gets pushed in.
I've seen your other design and this might have similar problems if the glue joint breaks under pressure.
Paul.