Why is there so much talk about which one is better, and not very much talk about what PURPOSE each one is better for?
For a studio shoot, when you're going to be spending hours editing only several photos later, absolutely, shoot RAW, you're going to get a (Marginally) better picture for it, and will be able to print it a little larger, if that's what you want to do.
For sports shooting, when you're firing off hundreds, maybe thousands of frames, you sometimes can't afford the time or space to shoot RAW, time not only to clear the buffer, but also to cull and/or edit afterwards.
There's hundreds of uses in between these that fall into roughly one of these two categories, where either is better.
Landscapes - you'd probably be crazy not to use RAW - who the hell shoots 500 shots of the same landscape and picks the right one afterwards? Odds are you're looking at one picture, so it might as well be RAW.
Family/Party snaps when you happen to bring your DSLR along, I don't want to look through 200 pictures people in RAW mode - it's just not that important, and takes enough more time than JPG to be not worth it to me.
The cake baking analogy is interesting, but you also have to consider that buying a cake at the store is SO much faster than making it from scratch. What if you have to make 30 of them? Are you going to make them all yourself?
The people touting RAW as the ONLY way to shoot are right....IF they're talking about the top image quality.
The people touting JPG as the ONLY way to shoot are right....IF you're talking about the fastest way to get pictures somewhere, or the least space/time taken up while doing so.