I will change the names to be more generic.

• Camera Raw => Raw developing software
• Photoshop => Photo editing software

This could be a little subjective because some things could be done in one program or the other. For example, you could export a RAW image into a file of 16 bits and have enough room to do things normally done during development.

So the first answer would be that you made the things during development that require more change in the levels of the pixel value (you require those extra levels of each pixel).

In other words, when you need to squeeze more from the original data.

The two scenarios where you wished you had more information are banding and clipping.

Take a look at this similar answer: What's the point of capturing 14 bit images and editing on 8 bit monitors?

Having raw data means that you have more levels of information (bit depth) at your disposal.

A specific example is If you change the exposition of a gradient, like a sky, and make it brighter or darker you want to avoid banding.

Let us make a list of basic things that can be done and you need (want or wish) this extra bit-depth:

• Exposure (especially in extreme cases)
• Color temperature
• Noise reduction
• Basic curve adjustment (shadows and highlights)
• Chromatic aberration

I would argue that some other changes need the lens information, more than an extra bit-depth:

• Lens distortion corrections

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Things that do not require Bit-depth at all are things like cropping, so that is not important at all to be done during development.

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What you can not do during development are things that require masking and zoning, for example dodge and burn.

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Another thing could be more simple. If your software can do one thing or not. For example, a basic white balance is easier to do during development, but a color calibration could be very difficult to do in your photo editing software alone.

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A third decision-making thing could be, What works best for you, even what is more fun to do for you.

I normally do things in RAW development that "have to be done", and in editing things that "I want to be done" and yes, this is a bit subjective n_n.

I even do (what could be considered) photo editing on a vector-based program...