NEX-5N jpegs over shapened ?

I dont have too many hours on my new NEX5N but i generally shoot jpeg. I appreciate its bold and sometimes other worldly colors for semi abstract composition but i am finding that even shooting a jpeg in "natural" with min saturation and sharpening can produce images that don't appear at all natural. I assume the solution is for me to start shooting RAW.

As you can see from this photo, it can be kind of cool but it also doesn't look at all natural. Shall I assume their jpeg processing is just not what im used to (former Nikon D40 user).?

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The constant challenge to find portability and quality goes on...and on...