[font color=\'#000000\']Just read a piece by thom and understand that Nikon's NEF compression takes advantage of the fact that we really don't need the hyperfine shading in the brightest tonal ranges. Indeed, he says our eyes work in a non-linear fashion with brightness. That fits with my hypothesis of where designers would want to go when faced with the observation about so much data range being allocated to the top two f stops in the captured sensor range. Cool!
IMHO, the Luminous Landscape articles "Expose to the Right" and "Understanding Histograms" ought to be adjusted to explain the linear vs log brightness reflected in the digital data.
BTW in response to earlier post, it's my impression that jpeg compression is more related to interpretation of adjacent pixel data to be able to portray the image in fewer pixels rather than to compress brightness shades.[/font]