How iPhoto handles Camera RAW images

Question

Ok, so iPhoto can import Camera RAW files from supported cameras. But then what happens to them? This is what I think is happening when I edit imported Camera RAW files from my Canon Digital Rebel (not XT). If anyone has anything to add, I would appreciate it.
1. When first imported into iPhoto, the image is untouched and shows as "Canon Raw" with its original size (approx 7MB) in the information window.
2. If you have an external editor (like Photoshop Elements) setup, double clicking the photo causes iPhoto to create a new JPEG image with the same dimensions as the original and about 2.2MB in size. This JPEG image is what is opened in the external editor.
2a. The same thing happens if you edit inside iPhoto.
3. After editing a RAW image (i.e. creating a JPEG as above), the iPhoto library still shows the image name with .CRW, but the information window now says the format is "JPEG Image (from Canon Raw)" and the size is about 2MB. The edited JPEG image is what is shown in the iPhoto thumbnail.
4. If you now Share->Export the image, when "Original" is selected in the Format popup menu, the unedited RAW image is exported.
5. If you want to export the edited image, you need to select JPEG from the Format popup menu when you select Share->Export. Then your edited JPEG image will be exported.
6. If you drag the original unedited RAW image from the iPhoto library window to the Photoshop Elements icon in the dock, the Canon RAW image is opened in Photoshop Elements. In this case, iPhoto doesn't create the JPEG image first.
Did I miss anything?

Answer 1

I developed a neat workflow around iPhoto's RAW capabilities.
1. Import RAWs into iPhoto
2. Open Raws in Photoshop via dragging photos onto PS dock icon
3. Edit RAWs
4. Reduce to 8 bit
5. Save as JPEG in the folder where iPhoto stores the JPEGs derived from the RAWs, i.e. the parent folder of the 'Original' folder where the RAWs you just edited are stored, i.e. overwrite the JPEGs already present there.
6. Close the file in PS.
Now, combine 4, 5, and 6 into a PS-Aktion.
iPhoto recognises the JPEGS, but sometimes one has to click on them show the edited version. Somehow, iPhoto is still at first creating a preview from the RAW file and not recognising that there is an edited JPEG version (understandingly, since iPhoto can't remember it created edited JPEGs).