Infiniti2000 said:
... I agree with that. You're trying to use a movement mode in a way that doesn't apply. It's no different than applying flying while burrowing. Or walking while flying. It's an invalid approach.... Statwise, I see this being handled the same way as the penguin, by granting those birds a swim speed. I don't/can't see it as "flight" because that opens up every creature out there who has a Fly speed, without restriction.
First, you can indeed fly underground, nothing prevents it (not while "burrowing" of course, as that is a seperate mode of movement, just as you can fly underwater but not while "swimming"). Of course your movement rate for flying while in the ground would be zero by any reasonable interpretation of "hampered movement." Not even a 5-foot step.
You can also walk in the air, if you have some means of staying aloft without flying and having some means for walking to give you actual locomotion (Airwalk spell, anyone?).
You can walk underwater, too (but not while swimming), if something gives you enough purchase with your feet to do so (that's flat-out RAW).
To me the issues are simple:
1. You cannot fly while swimming (two different modes of movement).
2. If one wishes to fly underwater (NOT swimming), then what is needed is to decide how the "Hampered movement" rules should apply to this situation.
Since the rules on "Hampered Movement" do not address this, you are on your own to decide. The MotP presents one way you could do this. It is not necessarily the only possible method. The MotP method fits in nicely with the way Hampered Movement works, which is why I really like it.
Anyway, I think you can rule (RAW) that flying underwater is allowed but is Hampered Movement. There is no RAW for how to apply that Hampered Movement - in other words, no RAW for how much flying is affected by being underwater.