You can't create raw format. But in Bridge you can have the option to edit jpeg format pictures in camera raw. If set up just right click on jpeg and choose "open in camera raw". Option is in edit/camera raw preferences.
I found out you can convert jpeg to DNG. Would it be smart or worth it to mass convert all of my pictures even if I don't get the same raw capabilities? I would do it mainly for further non-destructive editing and to match the new raw files I will start using. Is it worth it?
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Keep in mind that because jpg is a lossy format, what ever data was disgarded, thats gone. As for converting to another format, thats actually a good idea, in that no more loss will occur(speaking of only file I/O data only), until you save as jpg again. Therefore, what format you choose, is dependant on where you want to edit the image. dng, tiff are good canidates for camera raw dialog box or lightroom. Psd, png, tiff, tga and probably a few more are good candidates for photoshop.
If you have the drive space, its a good idea to archive the jpgs once the conversion is done, more of a procaution than anything. I crinch a bit when I hear of files being deleted, no telling when they may be handy.
The jpg remains a jpg, but it resides in a DNG container.
Just some random thoughts, no real advice here...
As long as you don't save over your original file, all editing is non-destructive.
If you open your original photo from a DNG, even though it may have a JPEG inside it, there's less chance you might accidentally just hit File - Save and write over it, because you can't File - Save into a DNG from within Photoshop proper.
Also, if you would like to open your original photos through Camera Raw but don't want to use it for just any old JPEG, encapsulating the originals in DNG files will give you that distinction.