I never knew nor paid any attention to the fuss about Raw video file v.s. H.264 when it comes to DSLR video until I saw this comparison video that was produced by Dave Dugdale of Learning DSLR. Basically, you’d want to shoot raw video for the same reason why you’d want to shoot raw photos: to get more life out of the product, may it be edited or unedited. As you can see in some of the side-by-side comparison segments, the raw footage (on the left) just pretty much blows the H.264 footage out of the water, by a long shot.
It’s too bad that there’s no Nikon version of Magic Lantern. I’d most definitely give it a spin if I were a Canon shooter.