Actually, I see three very different topics here: dynamic range, color management (profiles are part of that) and in-camera processing.

Dynamic range has to do with what the sensor itself can record. It shouldn't change over the life of the camera, but newer sensors usually have a higher dynamic range than older sensors.

I'm not a color management expert, but basically you're making sure that the same color red (example) that you're seeing with your eyes carries all the way thru your workflow to the final print. Of course, maybe the color you want is different and with a calibrated system you can be sure that your changes will still give you the print that you want. Two of the exact same model of camera might record colors slightly differently, same is true of scanners. Printers print differently depending on model and paper you're using. The big one is the monitor - color can change how it's seen over the life of it, and by quite a lot. Biggest bang-for-the-buck is in monitor calibration. I saw a huge improvement when I started using it a year and a half ago, and it should be a requirement when you're working with RAW files, IMO. Monitor calibration might set you back $200, but a full-blown color management system will cost you several times that. Monitor calibration alone might take care of 80% of the problem.

In-camera processing is easy enough to change, I've done it accidentally. I guess you could think of this as "in-camera Photoshop".