Just reviewing my notes from the Thunder Lizard Photoshop Conference this summer. Jeff Schewe is one of the key advisors to Thomas Knoll on the implementation of Photoshop Camera Raw. During his session on Raw he made an interesting point that most people are unaware of.
The camera manufacturers have undocumented methods/levels of JPEG compression. There is no way to open it in a program like Photoshop, and not have the program ask about how much to compress it when you close/save. This means it must be recompressed, which will cause additional data loss.
Bottom line is that having your camera make JPEGs will likely cause you to pay the price for lossy compression twice.
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