Count said:am I to assume that after this update the still photos will no longer be .jpg files? If so, why in the world would I want to do this? I have never even heard of a .dng file, and have no idea how th whare or edit it. Am I missing something here?
No, you will still get jpegs. You also have the option to select raw (,dng) in which case it will still record a jpeg as well as the raw file.
Raw files are kind of what they say - the raw image data from the camera without any sharpening, colour modification or compression. This allows you do make the decisions on hue, saturation, sharpness, noise, etc, etc, in a raw (.dng) editor before exporting it to something like Photoshop for saving in whatever format and size you wish.
If you have no need/want for raw images then there's ostensibly no need to update this time round, there's no other functionality added with this update.