"Output dependent meaning--what type of format (i.e.JPEG,TIFF &C) that you plan to save the images in final form after processing or for what purpose they are destined?"
By output dependent I mean both the type and manner of output. I sharpen differently for print output as opposed to screen output and I sharpen differently for X size print versus Y size print. Because of this all of my edited files are saved without sharpening. There's a good book on this subject:
Amazon.com: Real World Image Sharpening with Adobe Photoshop, Camera Raw, and Lightroom (2nd Edition) (9780321637550): Bruce Fraser, Jeff Schewe: Books
RAW converters are the software used to take a RAW file into an RGB format image. Photographers like the analogy of developing. A RAW file is a negative and an RGB TIFF or JPEG is a finished photo. RAW converters demosaic the RAW file, convert to an RGB digital color space, white balance the photo and allow operations like tone adjustment and CA removal. They've become increasingly more sophisticated; for example it's common now for the RAW converter to apply corrections for known flaws in specific lenses. Canon's DPP RAW converter automatically adjusts for known distortion in my Canon zoom lenses.
Each camera manufacturer supplies their own RAW converter for their camera. Otherwise we can use commercial RAW converters like Adobe's ACR, Lightroom, Apple's Aperture, Phase One's Capture One, etc. The bad news about this is the experience many of us have had of opening the same RAW file in say four of these at once and expecting each to take us to the same starting point -- alas. And that means some degree of processing variation is taking place behind the scenes. As a result we all have our favorite products. I'm partial to Canon's own DPP, Adobe's ACR, Phase One's C1 and a free option RAW Therapee.
"Observation-- maybe this is not true-- but you are when using JPEG images, actually placing the responsibility for the RAW conversion and a lot of the image post processing with the camera. Agreed that the new cameras are sophisticated as hell....but arent you almost always going to get a lot better results shooting RAW and doing conversion on an editing machine..."
Well there it is; exactly! The data captured by the camera sensor has to be processed into final form. There's a lot to do and a whole lot of sophisticated technology behind that. If you really want to peal back every layer of that technology, Helen here is probably your best bet as the top technologist. She's got the last precise detail straight. However (and I expect Helen will agree), in the end the algorithms built into the cameras are dumb blind. So if you really want the job done right you need a human being with eyes in their head. That human needs to be trained and better have a good grip on the technology, but the last word goes to the eyes. I don't "almost always" produce a result superior to what the camera's image processor yields -- you need to drop that adverb.
There's an 800 pound gorilla in the room now that has to be dealt with. I call it uncle Charlie's curse. Goes like this; Pamela is getting married. She and her mom are looking over bids from the wedding photographers. Dad walks in and takes a peek over their shoulder. Seeing the bottom line, he blurts out, "Hey uncle Charlie has nice camera, I'll bet he'd be happy to take the pictures!"
The consumer market juggernaut has a profound impact on all that we do. My Canon 5D has an auto white balance setting -- that's funny (doesn't apply to RAW). Camera's can't auto white balance. The algorithms don't work. All you have to do is look at the photos. However you can't discuss white balance in the consumer market and expect consumption to take place. As you move up into the pro-end equipment some of that stuff falls off (like built-in flash), but not all of it. Adobe keeps slipping it into their software for example; where are the dollars after all? So part of the effort that falls on all of us here is navigating past the flood of consumer cr*p that can easily drown us. I teach photo. In the classroom I took a broken consumer grade point and shoot camera and nailed it to the wall (pissed off plant operations) with a spike driven through the built-in flash. I tapped up a sign underneath it for my students offering to likewise correct their cameras. Another example: This thread has talked about camera JPEGs. JPEGs? My photos go from camera RAW files to TIFF or PSD files to archived TIFF files that I then print. JPEG has no place in that work flow.
Joe