There's no point in not shooting RAW files, only if you're really limited on storage space should you shoot JPEGs. RAW files are digital negatives, JPEGs are digital images. A film negative comes out of the camera and is processed in a darkroom, with a JPEG you're taking and developing your image in the camera, with a RAW file you're taking the shot with the camera and developing it with photoshop or some other tool. It allows you far more control over 'pushing' or 'pulling' the image than in camera does, plus an app like photoshop or the one linked below is simply much much better at 'developing' a digital image than your camera is. It's much closer to a darkroom process.

I use this free RAW converter most of the time.
http://www.pixmantec.com/products/ra...ssentials.html