Mongo - can't believe you don't keep your original NEF's. What if you decide that you want to rework your images using a different style of editing? I am constantly going back over my original NEF's and trying new processing techniques that I learn along my photographic journey. I have recently been reworking some of my images from my D80 camera - I am using better techniques than the ones that were around when I had my D80, i.e. better ways of sharpening, noise reduction, bringing out colour, vignetting, etc.
My workflow is similar to Rick's - I initially use LR to make adjustments to the raw file (occasionally I will use a preset for a certain look), then I open up that file in PS as a TIFF. Once I have finished processing it, I save this file at 16 bits for archiving and then I resize and sharpen the image for web use and save this as a High Resolution jpeg. I currently have three storage devices equivalent to 1.75tbs and still have some space on them.