If you shoot in jpeg the camera retouches them when it saves the file, adding sharpness contrast, saturation, tone, noise removal, highlights, white balance... depending on your settings.
Turning that off and doing it later in photoshop just gives you more control to how much is done, sometimes the camera can overdo it. The camera doesn't know what you want as a final result, so I don't trust it.
Almost every photo is retouched in one way or another. Even taking a roll of film to walmart will result in some minor adjustments. There is absolutely nothing wrong with it either. Pictures have been "tweaked" for a very long time, it's just easier to do.
When it comes to pictures that are photoshopped the the point of looking nothing like the original (adding animals, buildings, removing large objects), it's still art, just not a "photograph".
even shots i take out of the cams and think are perfect right then i still post process a little bit, and i'll tell you what, they get even better with the PP. And just because we PP pics doesn't mean they are going to be a complete different shot, many times people useing cheaper lenses need PP to get the colors, sharpness, contrast, to be what they originally saw when they shot the pic, let alone the fact that many shots will have some sort of imperfection you didn't see originally, perfect example is sensor dust.