For me, RAW+jpg fine is the way to go. If I'm shooting for some use that demands speed I can ship the jpgs off quickly... otherwise, I dump everything to my hard drive when I get home and make preliminary editing decisions in Bridge, giving keepers a star rating for later reference. At a later date, I can also refer to these star ratings to purge RAW files from the unrated images... this conserves space but leaves me with a jpg just to reference the shots I took on that day. The hero shots will typically consist of a camera jpg, RAW and XMP files, occasionally a Photoshop work file with layers, masks, etc., and a finished .jpg to make prints from or upload or hand off to a client.
Visually, the difference to me between RAW and jpg is pretty obvious... dynamic range is superior, highlight and shadow detail are remarkable ... anyone who shoots a wedding and looks at the added detail in a bride's white dress and a groom's black tux should not need any further convincing of the benefits of RAW. I'll grant that when subject matter is less challenging, the differences can be more subtle, but in other cases shooting RAW has made the difference between an acceptable image and a superior one... so to me shooting RAW seemed a no-brainer, especially since my camera allows me to save both.
I will admit that I do a lot of image manipulation. I've had a darkroom since 1967 so image creation for me was always something that continued well beyond when I pressed the shutter and I naturally migrated that attitude to digital. In addition, my job as a graphic artist and computer animator meant that I had experience with Photoshop and other graphic software that preceded the purchase of my first digital camera by more than a decade, so for me it seemed natural if not essential to make use of those skills in generating the best possible finished image. I already learned about the advantages of working in the 16-bit domain years before, but even so I stubbornly shot jpg for nearly a year before my frustration level prompted me to obtain the larger cards and hard drives that would allow me to start working in RAW. I've had no regrets whatsoever and would never go back (at least not for my serious work, as I said earlier there are times when jpgs are perfectly fine for less demanding applications).
Is it worth the extra processing time? I guess everyone has to make that decision for themselves, but I think anyone who uses a program like Lightroom or ACR for a while will develop a workflow that minimizes (or perhaps even negates) the extra time spent dealing with RAW files vs jpgs... for example, I've found that working with a stack of images in ACR is actually faster than recording an action and applying it to a group of similar jpgs in Photoshop. Also, some of the tools in ACR are either not available at all or are easier to apply (and are saved nondestructively in an xmp file). For example, ACR has a tool for correcting CA at the edges of images, and if you load a stack of shots that were taken at the same zoom setting you can correct them easily and all at once. For a budget-limited guy like me who is doomed to using less expensive lenses, I can tell you that for some images, that tool alone makes ACR worth using. But I guess this is not really germane to the discussion since you can now get jpgs into ACR and do many of the same things to them that you'd do to a RAW image, albeit at lesser quality.
The main issue as I see it is speed in the field (does shooting RAW alone or RAW+jpg slow the frame rate significantly?), is file transfer speed an issue? Do I have enough storage space? These are all thing I've considered and they don't seem to outweigh the advantages that RAW offers... I don't find an objectionable lag in shooting speed until the buffer is full, and when I do need to shoot at full speed it's rarely for more than one or two seconds so that's not been a problem. A minute or two extra to transfer files to the computer is not a big deal, and with 1TB drives going for $100 or so, I'm not about to complain about space issues when it's so easy to buy more... storage space is a ridiculous bargain when compared to what we routinely spend on even cheaper photo accessories like tripod adapter plates or a polarizing filter or a camera bag.