The LED's that light the screen are in the frame at the bottom of the screen. If you look directly down the screen you will be able to see them. That is normal. You shouldn't be able to see them when you are reading the screen at normal angles.
Other than the recent post from someone whose device seemed to have had an issue from sitting outside, there haven't been any other issues with waterproofing that I can remember (assuming it was a waterproof version
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