Alot of incite here. Thats why I like these forums. I can edit my photos as a jpeg, just as well as a raw. So I still dont see a real reason as a "hobbyist" to shoot in Raw.....but I suppose for the professional it would give a possible advantage.
I'm strickly a hobbyiest that started about a year and a half ago with a Canon XTi and I only shoot in RAW. The reason for this is I was never really happy with the JPEG images that I was getting out of my XTi...they seemed really soft and I didn't like the way the colors were coming out...I tried all the different Picture Styles and wasn't happy with any of them, even after editing them with Digital Photo Professional or Photoshop Elements 6.
Then some of the more experienced local Canon shooters told me I should try shooting in RAW and I'm glad they did. There was a huge difference in the way the images came out...the RAW images were a lot sharper and had much better color, detail and clarity than any of my previous JPEG images. Wish I started shooting in RAW earlier. I haven't shot in JPEG since.
You could try shooting a scene using the highest JPEG quality setting and then shoot the same scene in RAW and then edit both images and compare. Then decide which you would prefer to shoot in.
You might also want to check out the information in the following links.
RAW File Format
DPS: RAW vs JPEG
RAW vs JPEG: A Visual Comparison
Raw vs JPEG Experiment
RAW vs JPEG