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Hi Blake,
I can attest that most DSLRs made in the last 3 years do an admirable job with their jpeg processing. It is, for most people unnecessary to user RAW, as a result. For the most part, I encourage people to use jpeg format for the reasons you state, here.
However, there are some distinct advantages, when working with images that are not exposed "properly" that allow recovery not possible with the jpeg. If, for example, white balance is set incorrectly, with the RAW file, you can adjust that rather easily, while it will take a fair amount of color manipulation to attempt it with a jpeg.
One other point I should make is that Photoshop/Camera RAW is not really the best photo management software. If one uses Aperture, or Lightroom, the import and management of RAW files is a breeze. Come by some time, and I'll show you my workflow in Lightroom.

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