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Shooting in jpeg files

In 100 words or less, the primary reason P&S cameras dont save pictures in RAW format is they are oriented towards the non-photographer (read: kids parties, family get togethers, occassional trip to a stadium/arena event, new cars) users who simply want to grab the shot, and print it or email it to friends and family.

Think KISS (Keep It Simple, Stupid) Many (most?) newbie digital camera users buy P&S because of price, and it's simple to use. It also doesn't require any fancy-smanchy post processing software, either. Think of P&S cameras as the digital version of the Kodak Instamatic of 30-40 years ago. Millions and millions of them were sold back then.

As an aside, when I moved from 35mm to digital about 12 years ago, I started with P&S for the exact same reasons...price & simplicity. I had enough control shooting Av or M when I wanted to, but I got a lot of decent results in full Auto, as well. Being a digital newbie, I didn't know RAW existed, nor did I have to. It's only after 9-10 years with P&S I wanted to do more, and moved to a DSLR. And a little less than a year later, I moved to RAW (3 months ago).

Bottom line, how many newbie digital shooters would have even the faintest clue of what to do with a RAW file, much less figure out he needed some fancy software just to see the pictures?
 
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