...and this is why I shoot in raw

[freygr]

Anbesol: RAW is Different than JPG. JPG is limited to 256 values per color, a 12 bit RAW is 4096 values per color Even if the camera does a linear transfer function to 8 bit the file is losing color information, 3840 shades per color, dynamic range. The is why n8 was able to get a very usable edited photo with out noise or JPG artifacts.

As part of the JPG compression shades of color are merged to save file space, losing color information and detail in the compression.

[freygr]

Anbesol: RAW is Different than JPG. JPG is limited to 256 values per color, a 12 bit RAW is 4096 values per color Even if the camera does a linear transfer function to 8 bit the file is losing color information, 3840 shades per color, dynamic range. The is why n8 was able to get a very usable edited photo with out noise or JPG artifacts.

As part of the JPG compression shades of color are merged to save file space, losing color information and detail in the compression.

[Franglais]

..
Franglais - My A700 does not clip black or white if you select dynamic range optimizer in standard or advanced modes, I assumed all cameras have this feature, do they not?

Well - it looks like they have something similar but it's not exactly the same.

Dynamic range optimiser is turned on by default in Sony cameras. According to the reviews I've read the effect is fairly subtle.

The Nikon equivalent is Active D-lighting. Apparently the effect is more brutal than with Sony. It's turned off by default on my D300. I don't use it.

These things all work by underexposing the image in contrasty light to preserve the highlights then adjusting the mid tones to put them back where they should be. The tonal curve is an S bend, not linear. And I have a feeling that when you import the image into a RAW editor you get the underexposed version, without the tone adjustment.