Ideally for convenience, many find it easier to be able to open the camera raw files (nefs) directly into Photoshop Elements without the added step of converting to DNG files, however, converting to DNG files is a step that many professionals do, so i don't think your losing any quality and if you save the original nefs you can always go back to them, if and when you upgrade to a version of Photoshop Elements that will open them directly.
I wouldn't let having to convert to DNG files stop you from getting a new camera, that undoubtedly will have better image quality than older models.
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