That is revealing! Can I suggest that this inability of the camera to produce cleaner images at higher ISOs using the same exposure is due to the fact that the FZ50 employs a CCD sensor.
If it has something to do with the sensor, they still could have tested against the other option of software pushing. I can't see them choosing the option that gave the noisier result, if they actually compared them, especially since it requires less electronics!
I wonder if all CCD cameras show a similar problem at high ISO. Perhaps not a worse image at high ISOs but one that's no better than at base ISO with the same exposure. I take it these shots were RAW?
Yes. I showed ACR in the JPG, but I got similar results with my hand-conversions (ACR's a lot faster).
I recall doing a similar test with my Canon D60 a few years ago. Having missed a few shots on occasions whilst stuffing around changing ISO (a procedure made more difficult because I'm long-sighted),
I'm heading there in the fast lane. I now focus clearly only somewhat at about 20 inches, and only in bright light. As a youngster, I could read the copyright lines on eye charts.
I wondered just how much improvement there was between an underexposed shot at ISO 100 and a 'correctly' exposed shot at higher ISOs. I was surprised to find there was very little difference. There was some improvement in the shadows, at high ISO, but nothing to shout about.
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Well, that's where most of the difference is going to be with a DSLR, as shot noise is relatively low, and the same no matter how you perform your exposure index. Given a certain camera and lens, and the same subject in the same lighting, shot noise has nothing to do with ISO; it is determined by the Tv and Av values.
With the FZ50, shot noise is stronger at the pixel level, so noise is visible at all levels, and the high read noise of ISO 1600 adds further to it (it seems to be about 30x as high at ISO 1600 as it is at ISO 100 on the FZ50).