1. "Auto White Balance" on underwater pics w/o a strobe yields "blue" photos. You then have to use the "Mandrake" process in Photoshop or PaintShop Pro to correct it. Even then the photo does not near resemble using "Manual White Balance"
2. The "Underwater White Balance" mode on Canon cameras is a happy medium setting as it would be impossible to have a pre-set underweater mode to accommodate all conditions. However, it would be a step above using "Auto White Balance" on non-strobe shots.
3. The "Auto Magic Filter" would be better for under 40 foot dives in clear blue water on a sunny day. It is used in conjunction with "Auto White Balance". However, you will not be able to use your internal strobe for macro shots as the pics will be red. This filter is inside the housing which precludes you from removing it during a dive to shoot strobe shots.
4. Last but not least, "Manual White Balance" IMHO is best for a point-n-shoot camera with post-processing in a software program.
If you are not comfortable with calibrating the Manual White Balance from a slate or the like then give the "Auto Magic Filter" a try. The regular "Magic Filter" was designed for DSLR cameras.
The "Auto Magic Filter" is for blue water. The green water Magic Filter is for DSLR cameras.
Yes, the built in strobe is good to about two feet max so macro shots come out best. If you get too close to the subject the internal strobe may show in the photo because of the close proximity of the strobe to the lens.
The other White Balance modes on the camera cannot replicate underwater conditions.