There are in fact several good reasons for using a smaller color space.
- ProPhoto is highly compressed in the shadows, concealing valuable diagnostic information in the histogram. Below is the same file in ARGB and PPRGB. Note the red channel in the shadows, this shows up as an unpleasant cyan color cast in the shadows. One glance at the ARGB histo, and you spot the problem immediately.
- The long-standing Photoshop bug that causes severe shadow color banding in ProPhoto files, with GPU at "normal" or "advanced". The reason is probably, again, the compressed shadows, causing small errors to balloon.
I don't completely agree with these statements
1.- Low values of red or any color in a histogram do not necessarily translate into shadows as well as any high or clipped value in the histogram do not translate necessarily into highlights, since you cannot prove that the channels have those values simultaneously. This is a common mistake some people make and try to solve clipped channels by underexposing when the cause might be saturation outside the color space. In addition, even if they were related to shadows, you don't have certainty of where in the image are those shadows.
I see this more an issue of the lame histogram available in most applications (why can't they give us something like RawDigger?) than a problem of the color space itself.
For example: the cyan patch in the color checker 24 (last one in the third row) is outside of the gamut of sRGB and the red will be zero and the histogram shows a peak also at zero, as shown in the following image, and it has nothing to do with a shadow (The cursor was over the cyan patch, but it was not captured in the screen shot, ACR configured for sRGB)
I find reading out values in the info palette in Lab mode, a more reliable way to identify color casts in deep shadows or extreme highlights.
2.- The photoshop bug might be due to the compressed shadows, but as I see it, that is a problem of the existing tools and not of the color space per se
Good color is about relationships and has nothing to do with fractions of total gamut volume. More saturation isn't always "better", but often just more garish and unpleasant to the eye.
Absolutely, I could not agree more.