Yeah, I've guessed something like that. For compatibility I'm not using raw format on my Panasonic Lumix, especially since it doesn't look any better than fine jpegs.
A binary program is usually of not much help if we cannot look the "inside" of it.
You can look at dcraw, a c program supporting roughly all "raw" formats output by digital cameras, and being actively maintained.
Decoding raw digital photos in Linux
Personally I'd like to see support for "raw" images somehow in MediaPortal, with thumbnails. I can live without meta-data but I'd like to see some of that too. As a user I don't care as much wether it's integrated in MP or a supporting program.
As far as reasons to support "raw" images, the main one is to me what has been said previously; I shoot in raw because it is an advantage for the post-processing. I can for example change color temperature (tone?) without any loss in quality. Converting to jpg DOES take time and a lot more hard-drive space. Typically a good quality jpg comes in at about 70-90 % of the original raw image from my Canon EOS DSLR.