Great answer from Daniel. I'll expand a bit.
When you shoot jpeg the camera applies one of several levels of sharpening, saturation, and contrast that you select. Once the pic is saved you can go back and
try to change them, and you can be successful up to a point.
When a RAW file is saved in the camera there is no processing applied to it (beyond setting the WB) so you get a "pristine" pic. Depending on the lighting and the subject you may not need to "process" it at all, but if you do, the processing methods available in photo editing software are better than those available in-camera. If for no other reason than they are infinitely adjustable within a hi-low range, as oppposed to a 3 or 4 setting range available in-camera.
Like I said before, if you're getting the quality of pics you want/need from jpegs, shooting RAW may be a waste of time (and memory space) for you. For optimal prints, particularly in larger sizes (12x18, 20x30 etc.) RAW is in my opinin a better option.
Bottom line is- If you never print larger than 8x10 and you're happy with your prints, then dance with the one that brung ya.
