My Rebel XS is horrible at white balance, so I shoot in RAW for that reason more than anything else. If you can get perfect exposure and white balance every time you take a picture, then go ahead and shoot in JPEG, but IMO if you don't want to miss those great shots then shoot in RAW.
While on the subject, I also think that ACR in CS5 is just like Lightroom 3 as far as photo editing goes. I {heart} ACR!
I have heard some people, in order to save hard drive space, shoot RAW and then save in JPEG and discard the RAW. Hard drives are so cheap now that I don't think it's worth the time/effort.
|