the blue might be due to white balance. With RAW, you can adjust them easily, while JPEG is processed and not much room for adjustment.

From the samples in L1020 thread, can clearly see the colors are too vibrant/punchy leading to unnatural colors, but people tend to like it because it sort of "pops".
L1020 with manual controls alone would already promoted it's usability factors, as a plus, the OIS.
The only issue is the "price", the phone spec isn't really good, there's limited storage available and no external storage options. Having such high megapixel camera and HD video capabilities, which purpose for photos and videos, lacking storage is a big factor, not to mention some limitation of WP in terms of files management.

Hope to see the L1020 replacement soon with most of the things improved, and priced competitively (especially since the Find 7 is now offering 50MP)

Of course RAW is better. I usually shoot RAW because RAW provides a lots of room for adjustment and flexibility.

Yes, and it needs to be processed.
Anyway, JPEG with minimal processing is good enough, but it will need some processing for different situations due to the minimal processing done.
That's why for DSLR, there is an advice for settings all adjustment to lowest/zero for JPEG.
JPEG is a processed file, think of it as cooked meat, if over-cook, then you can't really do much, but if mildly cook, then you can cook it further to your preference.

Then again, not everyone wants to always edit a photo, so a default processing has to be good and suits most people. I guess L1020 adopted more vibrant/contrasty processing on the JPEG was due to more people seems to prefer it. They have to follow the market majority, e.g. when people took a photo with the demo unit, "wow, it's so beautiful and colorful".
But as long there is option to adjust the settings and RAW option as a plus, it's very good already. Plus, the manual control is one of the main highlights.

The main issue with L1020 is the price, but then for those can afford or feels it's worth it, then go for it.
Another lacking is the storage options, for the price, if it's 64GB it's more worth it, but it's better to have external storage options; being a camera focus device, the user may use up many of the space.... Actually the external grip should comes with battery + storage. 

Looking forward for the successor for L1020. 

sifu, too expensive already and only 32GB and no external storage (somemore so expensive). Lumia 1520 cheaper and better spec, just lacking 41MP sensor.
Since already got 808, better wait for L1020 successor. If don't have 808, then maybe will highly consider L1020.

sifu, you also wait for L1020 successor better. Hopefully will have news soon.
Agreed. I guess they "move" towards "consumer choice" to get more people to buy it.

Price is not a main concern actually.  But storage space has some issue yes. 

What I did was to install Flickr apps that upload images automatically, frequent backup to the desktop, etc..

The reason I said 'price is not a concern' was that it was priced as highend smart phone device, not more than that. Its very unlikely to expect them to price it lower than, say, 930 for now, simply because apart from the usual smart phone features, it comes with higher end camera module. Much higher than the best of iphone 5S or Samsung S5 for instance. 

So for that alone, I think the pricing is justifiable. Of course the lower the price the better it is for us consumer. 

Right now with this 930, it seems that Microsoft no longer interested in 40MPix camera phone.  This is quite obvious. If it were to come out, we will have to wait till the 930 fever to drop a bit. Only then it justify the emergence of lumia 1030 with such camera, with relatively similar price range to 930. 

Waiting for price to drop means the emergence of successor, always the case.