"Not to mention the fact that any capital gains deduction and dividend tax credits are lost within an RRSP effectively increasing the tax rate on those types of investments upon withdrawal."

100% Capital gain, 40% marginal tax rate
$10K in RRSP doubles to $20K, net proceeds on withdrawal 60% X $20K = $12K Net
$6K ($10K net of tax) outside RRSP doubles to $12K, tax on $6K, $6K X 40% X 50% = $10.8K Net