Here's a quick demonstration to show you what the difference between raster and vector artwork is:
This is my ASM chip artwork viewed at high magnification. On the left you'll see the reflection of the buildings in the water - notice that you can see the individual pixels (looks 'blocky') - that's a raster image. Raster images has a finite amount of detail and looks worse the more you zoom in.
Now on the right is my $ sign - in vector format. Notice that the edges still look great and sharp even under heavy magnification.
Obviously photos and such cannot be done in vector format but all text or solid-coloured line-art normally starts their lives as vector graphics, and if you rasterise those you'll lose detail.
Raster graphics (e.g. photos) prints out great at 300 DPI but text and line-art needs to be 600DPI if rasterised for chips.
Ask Vietrounder to send you high-quality scans of his new and his old chips - he rasterised it all and his new ones are 600DPI while the old ones are 300DPI. He definitely sees a big difference, since his artwork is mainly line-art and text.
BTW here's a
the artwork I supplied to ASM (in PDF format)