Every digital camera that I know of saves images as .JPG files but some (usually the larger more expensive) models also support uncompressed file formats like RAW or TIF. Are they really that much better then a JPG saved at a large resolution with a good compression ratio?
World traveler Ken Rockwell has a number of "how to" articles explaining photography and one in specific dedicated to the JPG vs RAW file format. He makes strong and valid arguments on why a JPG saved at a high quality is the format of choice for him. Read why JPG is still better then RAW and TIF for todays digital photography.