Just to toss in a contrary opinion ... here's a little heretical thought.
Every week people are posting that Raw is best .. don't shoot jpg etc
On forums everyone wants the "best" of everything but sometimes good enough is good enough.
The Phantom's jpg files aren't too bad and for most people, jpg is all you'll ever need.
Shooting jpg is a lot faster and you don't have to go to all the trouble of the post-processing.
I shoot jpg because Raw takes too long for the shooting I do and I have no complaints about the quality.
I have always been a proponent of RAW since I started shooting digital - quite a few years ago. I completely agree with all the "advantages" posted in this thread. There is tremendous upside and flexibility shooting RAW and I always shoot RAW with my DSLRs.
That said, I also agree completely with the above.
Ultimately, you are not "looking" at the raw file. You are manually processing the RAW file and saving out to another format (ironically, that will be jpeg for most people).
Many professional sports photographers shoot jpeg. File size and need to post-process makes RAW less advantageous for many applications. I only point that out to show that with the right equipment, settings AND person pressing the shutter button, excellent results are achievable with RAW.
The difference comes down to letting the camera process your file or creating the need for you to process that file yourself. If your camera produces acceptable results and you don't want to spend the time playing with settings, jpeg is a good alternative.
Jpeg also has the big advantage of compatibility. It is also likely to be a more future proof format.
As long as you don't tend to run out of room on you SD card, the suggestion of shooting RAW+jpeg is best. You have the "no hassle" jpeg which you can share with friends and open in virtually any graphics software. You also have a file you can play around with.
Learning the basics of shot composition, white balance, exposure setting, etc. will make for better photography, no matter which format you shoot. RAW won't usually let you turn a horrible shot into gold, but it can let you make a good shot better. (How much better usually depends on the in-camera processing algorithm).
Final use is also a factor. For use as a screen background or viewing on a phone or small sized digital screen, there isn't going to be a quality difference between a camera produced jpeg or one you produce from a RAW file (even after you make adjustments or add effects). The real differences become more apparent when you get into higher resolution applications such as print.
Of course, with storage space cost being so low, there are few situations where shooting RAW+jpeg poses any disadvantage.
