In the video you will see below, the device seems to hold up fairly well. After being drenched in a cup of water, the phone quickly springs back to life. While it takes a few tries to open the lockscreen, we think this has more to do with the fact that it's hard to activate a touchscreen with wet fingers than anything else.
A few months ago, the Casio G'zOne was the only Android I knew that featured a water-proof casing. Then the Motorola Defy, Defy+ and Xperia Active were launched. Now there are half a dozen water-resistant Androids on the market, and the Xperia Active even allows for wet-finger tracking. I wonder how long it'll be before splash-resistance comes standard on most Androids.
This article has been updated since its original publication.