Back in the old days, when film was king, there were things like film canisters, developer, stop, fix and rinse. You had to thread film onto a large spool in total darkness and then drop it in to a canister filled with developer. Based on the ISO, you'd leave it in the canister for a specific time period (unless you pushed the ISO), frequently shaking it and dropping it on the counter to remove bubbles. After that, you drained the developer, rinsed, and then filled it with stop that would stop the silver halide emulsion from being sensitive to light. After a short time, you'd drain and rinse that and then drop in fix. Fix would finalize the film and harden the emulsion. It was at this point you could also pour in additives to chemically color or tint the film if you so desired. After a good rinse from that, you could turn on the lights (you technically could after sealing the film in the canister), pull the film out and hang it to dry. That was only the first of two processes to get the photo.
When the film dried, then you could switch to the red or yellow light, pull out the photo paper (not like inkjet printers, actual photo paper) and when the film was fixed to the enlarger, you'd expose it to the paper for a specific time (depending on how bright or dark you wanted it), and the paper would then be processed in much the same way as film - developer, stop, fix, rinse. I still have all of my equipment.
Processing like this could take a few hours. A time when a great deal of detail and attention was paid to the processing of photos. I've only described the processing of black and white film. Color was more involved and at times, dangerous. I never wanted to get into color for that reason. Digital cameras take away all of the chemicals, time and attention and bring us near instant results. With most DSLRs and some higher end consumer cameras, the ability to capture photos into a raw file is much like the film of the old days. Film only had the image on it that was taken. Nothing more than ISO setting (for exposure settings), aperture, shutter and focus affected the film. JPEGs are much like the final paper print. Dodging, burning, develop times, fix additives, and other factors are added to the processing as needed to affect the outcome of the final image from the negative. When you shoot to a raw file, you are effectively shooting to a film negative that still needs to be developed (kind of like the Develop module in Lightroom) and printed (saved as a jpeg or other final format or actually printed). A raw file contains only the captured image as the sensor on the camera saw it at the moment the shutter opened. There is no sharpening, noise reduction, white balance, saturation, contrast, or any other addition to the photo processed on it. It is simply, the ISO (sensitivity), shutter, aperture, and focus. You must develop it further using software to affect it in the manner in which you see fit. Why do you need to sharpen a raw image? Because the conversion process from the sensor to a file is flawed. It isn't perfect, and sharpness is the collateral to that.
If you are wondering about whether you want to shoot in raw or jpeg format, consider this; How much control do you want to have in the final output of your photo? When a painter paints, does he not select paint and brushes to his taste? Does he not wield them to the canvas with his own artistic impression of the world? A final photo, no matter what your tools are that you use is your own art, affected by the choices you make to create a unique visual window into how you see the world.
I'm not saying my idea is correct, but rather this is my take on how I see the use of raw files. I use them exclusively on my camera and never use jpegs except for final prints. I still sort of miss the days of developer, stop, fix and rinse.