Originally posted by rfg I dont think this is exactly true - if you open a raw file in irfanview (for example) it shows the embedded preview unless you disable that in the options settings. This is a perfectly fine full resolution jpeg with all the settings applied, at least it is when shooting raw in DNG format. It might be somewhat lower quality than the camera would save in jpeg mode but it is by no means "really poor".
The embedded JPG in a RAW file is full resolution, but it's "really poor" in that it's super compressed. Compression artifacts are all over the place.
You can see this for yourself very easily. Take a photo in RAW (not RAW+), then take the exact same photo in JPG. Helps if you do this on a tripod. Then view those pictures on your camera at full magnification. The differences are obvious. JPG "squares" are visible all over the RAW photo. Even if you take the photo at the lowest JPG quality (I said lowest quality, not smallest size), it still comes out better than the RAW snapshot.
Can you imagine if they put a high quality JPG inside the RAW file? Don't you think 24MP RAW files are already plenty big enough as it is?