pacman said:
I use a cheap padded case, but I hook it on the Camelbak near the hip. In case of falling I don't want to crack a rib on something strapped to my chest. Worse yet, a chest blow can stop the heart.
I'd say your more prone to injury on your hip. If you put it on your chest, your arms will catch you by reflex. I know people break ribs while riding, but that is usually from side impact.
One word of caution though. If you use the chest strap (as I do), be sure to run a tether from the camera to the camebak. I had a buddy go OTB, the chest strap broke and he lost the camera. We looked for hours, and never did find it (still look every time we ride there, two years later...).
I agree, keep it out where you will use it. (I put it IN the pak if it rains, or if I am sure I won't pull it out til the next stop.
Anyhow, I've thought about this a lot, and my opinion is that there is probably not a safer place for the camera or the rider than on the chest strap... (with a tether).