The latest generation of high end Canon and Nikon DSLR's have fairly good dynamic range and low noise. But could it be better? Almost certainly so.
Consider the Canon 1D mk3. At ISO 100, its dynamic range is a little over 11.5 stops; it's about the same at ISO 200, and then it gradually declines to about ten stops at ISO 1600. But the lower end of that range is quite noisy for each ISO, and so it's often said that the "usable" dynamic range is a good deal less.
There is good evidence that the dynamic range of these cameras is being limited not by the sensor, whose DR is about 14 stops, but rather by the electronics that implements the ISO amplification and the analog-to-digital conversion (ADC). A plot of the signal-to-noise (vertical axis, in stops) as a function of absolute exposure (horizontal axis, in stops) reveals many of the issues:
Each stop increase in ISO pushes another stop of highlights past the range of the ADC which are then lost; in the figure this is shown by the graph of S/N for a given ISO ending one stop earlier for each successive ISO. At the shadow end, increasing the ISO expands the range at low exposure, with the amount gradually tapering off until the improvement between ISO 800 and 1600 is rather small.
But the sensor doesn't know what ISO is going to be used, it just records whatever photons arrive, leaving it to circuitry off the sensor to amplify the signal and digitize it. That means that the sensor sees the *entire* range of the figure -- the upper bound or "envelope" of all the different curves. The sensor has about 14 stops of DR, but the limitations of the rest of the circuits allow the final raw data to see less than twelve stops of DR, and the user is forced to choose a "window" of EV within that 14 stop range by selecting the ISO gain.
Could it be possible to recover the full DR seen by the sensor?
It might well be possible. What one would like is to somehow be able to use ISO 100 to keep all the highlights, while at the same time using ISO 1600 to recover all the shadows. But how can one have two ISO settings at once? By having two separate amplifiers fed from the same sensor data, running in parallel. Suppose that the sensor signal is sent to two separate processing paths, each path an amplifier and an ADC, with one amplifier set to ISO 100 and the other to ISO 1600. The ISO 100 path keeps all the highlights but has noisy shadows; the ISO 1600 path loses the top four stops of highlights but has much better shadows. Quantizing each, one can then combine the image data in a manner similar to HDR processing to yield an image with all 14 stops that the sensor is capable of recording.
What would the result look like? Well of course, no such camera is currently made, but one can get an idea of the possibilities by shooting two successive images, one at ISO 100 and another at ISO 1600, and combining the two. I did just that with the following image:
The exposure was chosen so that the light bulb was just clipping in the ISO 100 exposure, the ISO 1600 exposure was taken just after with the same exposure settings. The two images were then combined at the raw stage, keeping the top four stops of the ISO100 data, ramping between the ISO 100 data and the ISO 1600 data in the next stop down, and then using the ISO 1600 data below that. The raw image was then treated to Bayer interpolation, a rough white balance, and gamma correction (using IRIS, a raw data analysis program). Areas involving the blending are the top of the lamp and the top of the bear's head:
For comparison, here's the ISO 100 shot alone with the same treatment:
One can really begin to see the noise in shadows at ISO 100 in the front of the lamp, but the blended exposure is rather clean. In part this is because ISO 1600 exhibits much less banding noise than ISO 100, apparently the banding noise is a property of the electronics downstream of the sensor and is suppressed by the use of high ISO.
A somewhat more powerful statement is made by the colorchecker chart; first the ISO 100 shot alone:
and now the blended exposure (which comes in this EV range entirely from the ISO 1600 component):
The bottom left square of the color chart is a bit over 9 stops down from raw saturation (EDIT: in the green channel; due to the tungsten lighting, the blue channel is another two stops below that).
It would be nice, to say the least, if the implementation of this sort of dual amplification/HDR blend were possible, and used in a production camera.