I have not found a reason to replace/store my RAW files with DNG so from that perspective there's no point in creating DNGs. If I understand the second point, since the output will have rendered data, I should stick with TIF. Is this because the TIF file stores more information?
I am fairly new to all this, having just started shooting raw on a Nikon D800 last year, so take what I say with that in mind. I am guessing what I am about to type will probably make me look pretty ignorant on the topic, but here goes.
My understanding is that they are BOTH loss-less formats so you won't lose any image data with either one. You will lose some RAW only info of course, but you probably knew that already. As for replacing my RAW files? That isn't something I am willing to do as I want to keep the information that was stored in the RAW. A RAW file loaded into C1Pro or DXO takes less effort to process than loading a TIF or DNG from the same raw.
If I wanted or needed to reduce the size of my stored images or wanted an archive of processed images, and was OK with losing the RAW data, I would PROBABLY choose DNG since it is substantially smaller than the TIF and I can generate a TIF from the DNG if the need arises, such sending it to someone who requires a TIF (One of my printing guys only wants TIFs).
As to "how" the DNG is smaller than the TIF I guess Adobe knows that answer. I think it was engineered from the get-go to basically equal a TIF but in a smaller footprint with the intent of creating some kind of new universal open format. I recall that some camera makers chose DNG as their native format rather than a proprietary RAW, which makes me think it must be a pretty decent file format.