Question on converting edited CR2 files to DNG

Sorry, I cannot find a separate DNG forum. If this question is in the wrong place, please direct me to the correct forum.
I have lots of CR2 RAW files on my computer, and I am considering converting them to DNG. Many of these RAW files have already been edited and so have a separate XMP sidecar file containing the edits in the same folder. If I convert (using the Adobe DNG converter) these edited RAW files to DNG, what is converted? The CR2 RAW file alone, so that the converted DNG file is the same as the original unedited CR2 file? If so, what happens to the orphaned XMP file? Ignored?
My concern is that I will lose all RAW edits if I convert to DNG because the conversion process ignores the edits contained in the separate XMP file.
Can someone explain this to me? Thanks.

So what you're saying is that the DNG conversion de-mosaics the image?  I guess that's not surprising, since for compatibility with older Photoshop versions you'd have to deliver a more or less standardized format.
Kind of throws a big monkey wrench into claims that converting to DNG is functionally equivalent to opening raw images directly though...  I was experimenting with a "fall leaves" image last night and no matter what I tried with the 2010 process I was still able to get more detail in bright red leaves with the 2003 process.
I suppose that says if you want maximum flexibility and control you'd better buy the Photoshop upgrades and stick to opening raw camera files directly.  A variant on the "if you want to play you have to pay" adage.
-Noel
P.S., Does the DNG converter read the centralized database as well as XMP files?  I personally prefer the database to the extra files.

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