I wrote "on chip" didn't I? and its happening there in one form or another isn't it? In any case were DXO to compare S/N of cameras using thresholds practical to photographers and use images converted in the matched software, I don't doubt that the digital backs would triumph handily.
What Jeff tried to explain you is that the so called
NR performed by the CMOS electronics is totally different from the one any software will achieve over the RAW data. The first doesn't mean detail loss at all, the second does. So it's irrelevant how well the MFDB software performs NR, because it will also damage the captured information.
That is why correct comparisions are to be made using the same converter. If after conversion one camera has less noise, it has more DR. If after conversion one camera keeps more detail, then it has more detail. And that's it.
What is crazy is to compare DR (i.e. shadows noise) between cameras, and defend the approach of using different software developers with implicit different NR each. It could happen the MFDB software reduces dramatically noise, but also texture. Would you conclude then that the MDFB has more DR but the same degree of detail as the rival DSLR? No way. The correct conclusion would probably be: the MFDB has more noise, i.e. less DR, while also keeping more detail in the well exposed areas. And this can be achieved by performing the same neutral conversion on the two RAW files, not using the
best software on each.
DxO provides the complete SNR response of every sensor, so you can calculate DR according to your preferred criteria (typ. 12dB), and see D3X still wins.
Regards