JPEG vs RAW debates never seem to end.
Personally, I use both formats, JPEGs for snapshots (family members having fun), and RAW when the image is an important one (National Geographic -esque landscape in front of me, or a studio portrait).
Anyway, I found a gem (two actually) of an example showing the ease with which one can fix NEF files using Nikon Capture NX edits in a Nikon digital SLR cameras forum thread which was debating (again) JPEG vs RAW.
Gerry submitted these – click on the thumbnails to read the forum post and view the before and after images.
First example
Second example
Much thanks for that, Gerry!
Buy Nikon Capture NX if you're using a Nikon D300, D3 or older DSLR, and Nikon Capture NX 2 if you're using the D700, D90, D5000 or newer.