The downside is that you have to process every picture. You cannot just post a RAW picture to share it, print it, or anything like that. One of the last steps in the process is usually converting to JPG.
this is quite true, but don't let it scare you from shooting raw, it's not bad at all if you develop a good workflow.
although you shoot raw the file still contains the info for your camera settings at that time,
I shoot raw, my workflow is as follows.
upload raw files/batch process to jeg with my sony software, {using camera settings this yields the same results as if I shot jpeg}/view jpegs and any that I am not satisfied with I open the raw file and process it, replacing the jpeg from the batch processing..
this takes very little time, the benefit is if I have a shot with extreme lighting conditions I have the raw file to work with..
about 1.5 years ago I shot jpeg only. I was quite content with my results and thought it was pointless to shoot raw, then I shot a sweet 16 party, I arrived at the location early to check out the room, and get a good idea of lighting conditions, it was basically like shooting in a very dark nightclub, the walls and ceiling were black, the only lighting was colored stage lighting.. I didn't like the looks of my test shots, so I decided that I would shoot raw/jpeg.
after the party I uploaded to my pc, I opened the folder of jpegs and started to work on a few pics, I was not happy with the results I was getting nor the difficulty of getting a good looking picture,
so I thought Ok now is the time to learn about raw, I opened the raw folder, and quickly learned that by having all the extra data, it was much easier to process the pics and get good results. that was the last time I shot jpeg..I've been shooting raw only ever since and have been so much happier with the end results..