Minor note: as far as I am aware (i do not write 3d engines for a living but have written games and small 3d libraries for my own use) instancing works fine with both (all?) rendering approaches in just the same way.
The benefits of instancing are felt more keenly in ray tracing because of the need to keep geometry in memory. If you're just dealing with direct lighting it's very easy to load and discard geometry as required as you rasterize the frame. One you start casting secondary rays you end up having to keep more of the scene in memory in order to shade a particular surface, since the lighting contribution from other geo can't be localised.
