The real debate is whether whatever "A.I." Topaz uses in its application is good enough to ingest a JPEG file and output a result that has equivalent photographic quality to a well-processed true raw file.
My answer to that is NO, the output of Topaz Jpeg to Raw is not at the level of a true raw file, understanding "true raw" as the original raw from which the JPEG was produced.
I would change the debate to:
whether whatever "A.I." Topaz uses in its application is good enough to ingest a JPEG file and output a result that has better quality than any other current way to edit a JPEG file. (and I don't have the answer to this)
Is the output a raw file? First consider that what this application claims to do is not a simple file conversion, but apply A.I. and try to recreate missing information that is coherent to the JPEG file, not necessarily to the real scene that was photographed. As a reference, consider the Google photos A.I. ability to colorize B&W images: would the colors be accurate to the original scene? Not necessarily, but the color information was "recreated" and is believable.
Having said that, the output file has some characteristics of a raw file: Linear raw, 16 bit per channel, uncompressed data, linear tone curve; while other characteristics are as in rendered files: color space encoded (ProPhotoRGB).
If you consider the processing of an image from "true raw" to rendered in tiff as a series of steps, I would say that the output from Topaz JPEG to RAW is just one step short of TIFF, so even if you can open the DNG in any raw processing application, there are some limitations to what you can do. For instance, in Lightroom/ACR there is no difference processing these DNGs instead of TIFFs. You cannot apply a DCP profile nor adjust white balance as in a true raw.
One more observation: JPEG to RAW tries to maximise detail by sharpening aggressively, so if you open the DNG with Capture one with its default settings the image will look really oversharpened. This is another big difference to "true raws", which in my experience are softer than processed images, especially if you use a camera with low pass filter.
Following the results of a test of recovering shadows (you may call it contrived)
Photo taken with a Nikon D800 in Raw + Jpeg mode, 14 bit raw and large, fine, optimal quality JPEG. Underexposed 6 stops.
The first image shows how the JPEG out of camera looks:
The following is what I could do with the "True raw" (NEF) file in LR:
And what I was able to do with the DNG output from JPEG to RAW + LR