I can remember early on when this debate was raging, it was almost as hot as the megapixel discussions that took place. But by and large as memory capacity increased, and buffers and transfer rates, the issue seemed to kind of die down. Personally, I made the decision to shoot JPEG for “everyday” shots, and have one of my custom settings set for my high-res/top quality images, i.e. landscapes, and use RAW for that. Otherwise it depends on what I’m shooting.
All that being said, this is a really interesting article on why RAW is the only way to shoot if you actually care about recording maximum image resolution, and the negative effects of JPEG manipulation.