I am shamefully admitting that I was wrong to advise someone to shoot JPG underwater if he wasn't comfortable with the RAW format. I do shoot RAW (NEF) underwater, but on land I usually shoot JPGs.
Speaking of Thom Hogan, here's what he says on his website:
What are the advantages of shooting in the RAW mode versus TIFF?
Thom's Answer: I wish Nikon hadn't put TIFF mode on the camera. JPEG FINE is quite good, much faster, and would give you photos that are pretty much indistinguishable from TIFF. If you want all the quality the camera can deliver, you shoot NEF (RAW), though. The NEF format gives you a host of things you don't get elsewhere:
The original sensor data: The sensor outputs 12-bit data through the ADC. JPEG and TIFF reduce this to 8-bit. Thus, at a minimum you've lost tonal range. But the real kicker is that after-the-fact interpolation programs (e.g. Capture, Bibble, QImage) have gotten better and better, while with JPEG and TIFF you're stuck with what the camera's electronics were coded to do. It's the difference between Polaroid instant photos and having a negative. With NEF you've got a negative, and if enlargers and printing technologies improve, so does your work. With a Polaroid (and JPEG/TIFF), your original defines the maximum quality you'll ever get.
The ability to override the camera's settings: There's a lot you can get wrong, but the most common problem is getting the white balance incorrect. NEF allows you apply white balance settings after the fact, while with JPEG and TIFF you'd have to use color controls in Photoshop to fix shifts, which isn't as easy or as intuitive. Ditto contrast, hue, and sharpening.
The ability to nudge exposure: Since we have the original sensor data and plenty of excess tonal range, we can apply different linearity curves directly to the data. This works great for recovering underexposed images, less so for overexposed images (a blown highlight is gone forever).