You should find out if your friend also believes the earth is flat and the moon is made from green cheese.
He's certainly missed the boat in understanding what RAW is about and that its become the standard tool of all photographers.
It takes time for people to learn about this information, process it and then grapple with it in a way that is meaningful to them and their lives.
For you and I it seems obvious that RAW is the way to go and there's no looking back because it is wonderful and right and you can make non-destructive changes to the digital negative in RAW as we climb the asymptote of perfection. We all seek to improve the quality of the final image.
For people who are not immersed in the world of high-tech photography or are new to digital photography, it can seem strange, this talk about RAW, archiving or moving away from something nice and simple as JPEG that 'everybody' uses so it must be ok....Engaging in RAW probably seems daunting to some people.
When I first used film, I didn't do my own developing but eventually I would have done so, had I not come of age in the digital era. Instead I feel lucky to have access to different RAW developers and have used PhotoShop since v 2.5 (I think).