From the K-5 Manual (as someone mentioned down-thread already):
RAW: "Effects of White Balance, Custom Image and Color Space are not applied to the captured images, but they are saved as actual original information. When you perform the development process by using RAW Development function (p.271), or using the provided software (PENTAX Digital Camera Utility 4) after transferring RAW data to a computer, you can create JPEG images with these effects."
Just to clarify, the settings you are talking about do not affect RAW files unless you convert them with the on-board "raw developer" or the Pentax Digital Camera Utility. If you're doing the former, you're not seeing a raw image on the computer. If the latter, they are being applied to the RAW image after you import them. If you're using LightRoom, Aperture, Capture One, etc, you're not really changing the image with those settings. If you're looking at the screen on the back of your camera, you're not seeing the RAW image.
I also have no issue with sharpness on my K-5.
Last edited by jstevewhite; 04-15-2011 at 12:00 AM.
Reason: clarity: