I just made my case the other day for why I shoot exclusively with JPEG using the EP-1, but that doesn't mean I am disregarding the RAW format altogether. RAW is a highly respected and widely used format amongst many digital darkroom aficionados.
UFRaw has been around a long time. It's an open source project based on the dcraw conversion utility. The converter itself is fairly straight forward in use and provides a plethora of controls, though some important items such as sharpening are in fact missing. UFRaw is also a cross-platform application in that it can be used on Mac, Windows, and Linux platforms.