A RAW file is usually 6-7 times larger than a corresponding .jpg On my own camera I shoot in the highest A2 .jpg. I only shoot in .raw for certain nighttime shots and in instances when I'm getting a "rare" photo. i.e. we saw Jack and Sally 2~ weeks ago at the Halloween party. .raw to me is, for the most part, a "just in case I screwed up my settings a little" type of thing.
It takes time to process a photo from raw to jpg. Couple that with size issues and it's no wonder why they let the camera do the work "on the spot" as opposed to an identical algorithm after the fact.
Money, money, money. It's all about money. The higher the quality photo, the more memory it takes up, the more harddrive space they need and the more server space and the more bandwidth..... it's all about the benjamins, not getting you great pictures.
These photopass people, while nice folks, are NOT photographers in the true sense of the term. They shoot in automatic mode and all they have about as much training as the guy directing you onto a clam shell in Nemo or VOTLM. All the training the get is "always have the camera hooked in if it's not on a tripod" "tripod only from dusk on" "try to get the ball / castle / tree in the picture if you can" and how to work the key pad.
Not a dis on them, just the truth on their level of training aka lack of expertise. Yes I know a few of them are photogs but that's probably 1% and it's not like it matters, they have to shoot on the preset settings, they can't do their own thing.
I do wish they shot in full A2 though. It'd be really helpful.