p.1 #1 · Automated shadow and highlight recovery: JPEG shooting
Is it common practice for digital cameras to automatically recover highlights and shadows for in-camera JPEG files?
In his review of an old Panasonic point-and-shoot, Alik Griffin mentions a mode called "i.Dynamic":
"This works by intelligently recovering your shadows and highlights in the JPG images. Many people say they don’t shoot JPG because you don’t get the full dynamic range of the sensor. This setting makes sure you get as much dynamic range as possible."
Do many cameras have similar modes and adjustments?
p.1 #2 · Automated shadow and highlight recovery: JPEG shooting
If you mean the MILC bodies, then most have different functions for that. Offhand I know that Canon has Auto Lighting Optimizer and Highlight Tone Priority in addition to the basic contrast settings and Picture Styles.
You still get 8-bit jpeg images, it is just that there are different ways to map the typically 14 bits down to 8.