Originally posted by shiner This is what I had assumed to be the case. I expect my RAW files to be... RAW files...
For Pentax that the case, more or less. I believe it is the same for Canikon. For Sony, Panasonic or Olympus, I think the raws are cooked.
The most important thing of raws vs jpeg is the dynamic range (12 or 14 bits vs 8) but it's true that if you applies things in camera and that you do it badly, that you may destroy some usefull information that a raw processing software with much more CPU, time and memory or more advanced algorithms could use for better results. So in a sense, it is better to not cook raws as then you have choice.
For example, take an old camera raw, use latest greatest lightroom/Dxo and compare what you got back in time to what you get today, and you'd find quite improved results. Easily 2EV gain.