Originally posted by jstevewhite Raw is not "theoretically" more flexible, it *is* more flexible. 14 bits vs 8 bits is not theoretical.
I've not used ACR directly - if I understand it properly, it's for a different workflow than Lightroom.
The Shadows/highlights as pointed out by Ash is pretty simple to understand - and can correct the OP's JPG example of the subject partially hidden in the shadows and give more flexible results than the in-camera correction - which although works is not generally applicable because if the next shot is a normal non-back-lit scene - then the result is likely to be kind of pale and washed out -
so applying the more drastic shadows and highlight corrections in-camera can only be done on a sort of case by case basis.
Cannot argue with you re: 14-bits and 8 bits - and will agree any substantial processing will reveal the superiority of RAW -
but for minor adjustments and corrections - even on this example which seems more substantial - processing JPGs is adequate - no doubt the RAW may have been more "flexible" by the fact it is 14-bits (or on some Pentaxes - 12-bits) but one could not apply the PS Shadows/Highlights as suggested by Ash -
Also the end result is still going to be in 8-bit sRGB JPG - where the difference between 14-bits and originally 8-bit is going to be marginal visually, if at all - unless of course as mentioned one has to much more drastic processing - which most photographers would prefer to avoid by getting the right exposure to begin with.
RAW vs JPG is a long running debate -
both have their places and advocates -
this is not the appropriate place to debate it -
there are plenty of existing threads,
where valid cases are made for both sides.