ID supports the DNG format, to some degree, but not DNG profiles. I see no change to that in the current version 2. What Brian may have meant may have been that ID respects DNG profiles embedded in DNGs?
I've asked Brian to comment here but I can't guarantee he will (sometimes outside vendors are understandably uncomfortable doing so). I do have a reply email about this but again, I'd prefer to let Brian either comment or allow me to post his email to me.
I'm under the impression after a few days of conversation that one can use DNG profiles or ICC profiles in that product begging the question, which is 'better'?
I'm also of the opinion that making ICC camera profiles can be hit or miss, DNG profiles are nearly always a hit. IOW, the issues with ICC camera profiles over the years has been much worse than say making display, scanner or output profiles. That pretty much just works assuming a number of factors.
I think I can say that Brian feels ICC profiles are a better way to go and I hope we (meaning those on LuLa who are interested) could test this. But the creation of ICC profiles by end users has to be viable. It has to work all the time. At least as effectively as using a DNG profile. On paper, an ICC profile, it's color model and processing may be way better but if you build 10 and 4 are OK, doesn't matter what on paper is 'better'.