Pardon my ignorance, but why is there no direct edit from .RAW files to PSD files? I am talking about a direct converter like batchelor, or RAWMagic, or Raw2DNG, I am not a coder or anything, but I am just wondering, because it seems like PSD would be way better, as it is supported in every single adobe application, I believe retains all the image data of a DNG or CR2, and on top of that it can be converted to 16 bit, so why is everything DNG and CDNG when it could be PSD and have everything be hunky-dory?
EDIT: Photoshop PSD files can utilize ACR in AE and PS, you just need to select the "camera raw" option when importing. Took me a couple tries to get it right but finally did.
Plus, PSD files use lossless compression, so smaller than tiffs, same quality, and more flexibility?