So Dan,
Lets say the camera's CMOS has a 12 million dots (pixels) on it. (example only figure)
Let's back up a step, since you're a video guy; and video production evolved differently than still photography production, due to the nature of the signal in the analog days.
(Incidentally, I was a co-op electrical engineer in (1979 & `80) at RCA Camden (New Jersey), where color TV, genloc, the VCR, and the optical video disc were invented, among other things.)
Anyway, TV cameras used something generically called a vidicon (actually an image orthicon) which produced a an analog signal, synchronyzed to the horizontal & vertical sweep. Without going too far afield, the "workflow" consisted of taking this analog waveform, processing it "on the fly" for color balance & mixing with other camera signals; and then either going straight to air or to videotape.
The key point to take away from all of this is that frame-by-frame editing, and editing a portion of the individual frame was, before the advent of digitizing the signal, all but impossible. Even something as basic as a split screen entailed quite a bit of circuit wizardry.
Fortunately, we've progressed quite a bit; but even though video has gone all digital, the workflow (video editing tools, such as Premiere) has (have) evolved where one is still dealing with a stream of frames, with the emphasis on "stream." (Though, of course, each frame is now addressable, and editable in Photoshop.)
Digital still photography evolved differently, however, due to what happens to the data once it leaves the CCD: Here, instead of the 330,000 Pix Elements ("Pixels") in each NTSC video frame being streamed, we have in a monochrome camera, say, 12 million, monochrome picture elements or photosites, each of which are frozen in time from the exposure, converted from the analog charge level to a digital value from 0 to 4095 (12 bit precision), and then sent on the way.
Color is simply a variation where, using our 12 million photosite example above, we can take three successive photos while rotating a color wheel with red, green and blue filters in front of it for a complete color picture. (In fact, early digital cameras used by NASA for Mars landers did just this.)
Or, we can install red, green, and blue colored micro filters in front of each of the 12 million photosites in our example, in what is called a Bayer pattern, also known as GRGB.
So, our 12 million photosites are now grouped into 3 million GRGB color picture elements (pixels). Each of these 3 million pixels can have 4096 red, 4096 green, and 4096 blue levels.
We now have a choice where we want to send this data:
Helpfully, digital camera manufacturers install additional processor power to take this raw feed, apply color transformations to balance out the white point, and convert it into an 8 bit per color (24 bit per pixel) JPEG file that matches the response of the eye, where the red, green and blue values each take on a value from 0 to 255; and then this data is compressed (lossy compression) and written to the flash memory.
Then, you bring this JPEG file into Photoshop, and you can edit this 3 million pixel file right down to the individual pixel.
But! "Shooting JPEG" poses two problems:
First, the conversion from RAW to JPEG in the camera is irreversible: If the camera is not set properly, the shot can be ruined, with little hope of recovery;
Second, for underwater images, the "white point" (actually the entire color balance, adjusted on the yellow-blue and green-magenta axes) is completely different than what the in-camera processor is expecting. It can try to adjust; but unless manual intervention takes place by adjusting the "white balance" before exposure, one runs the risk of the finished JPEG file being beyond repair.
But wait a minute! Why not peel the 3 million pixels of raw data off the CCD and write it directly to the flash memory... And bypass the in-camera processing directly? Now, we have 3 million red, 3 million green, and 3 million blue chunks of data, each of which have a value from 0 to 4095. Each and every one of these 9 million chunks of data is individually accessable in Photoshop. (more)
You take the picture and each one of those dots pick up the light and saves all that information as a RAW.
That is each DOT on the CMOS turns the light it picked up into a electrical signal and into a RAW format.
Now each individual dot on the CMOS has picked up a tiny bit of different light than the dot beside it has right.
That is correct: Each of the red, green, and blue "dots" has a brightness ranging from 0 to 4095 on a linear scale... And here, I stress the word linear, as it pertains directly to the subject of linear response color filters placed in front of the camera lens.
So you get it into your RAW editor on your computer.... PC of course

So you are saying that when you adjust the RAW image you have full & independent control of every dots individual light variation in case you have to change one of the DOTS because the light on that DOT when taken was wrong.
That is correct... And it's a whole lot of data to be crunched each time you make any changes. Oh, and that data has to be thrown up onto the screen, too!
Back in the early days of Photoshop (c. 1993), it was not uncommon for a basic operation like Unsharp Mask to take 10 minutes to crunch on a Mac Quadra with a 33 mHz CPU!
Today, in modern point & shoot cameras, this same operation takes just a few milliseconds in dedicated processors (like the Digic III processor in JKolgen's Canon Powershot G9.
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Getting back to the subject of using a filter in front of the camera lens when shooting RAW, since the raw pixel data is in linear form, it makes little to no difference if an additional linear filter is placed in front of the camera lens to "tune" the color: The same linear filter can be applied in Photoshop!
Furthermore, this filter that "tunes" the color extracts a toll in that it compromises the exposure due to light loss: The diaphragm (iris) has to be opened up, changing the DOF, the shutter speed has to be decreased, and/or the gain of the CCD's amplifiers has to be cranked up, increasing noise... And, on Mr. Kolgen's Canon cameras, that last option is programmed in as "Auto ISO"... And it may be the (easily overrideable) camera default setting, too.