Measurebating. It's a word that actually made the wiki dictionary. This thread is a perfect example of it.
To the OP: You and I had an interchange about DR 200-400 in another thread. I told you how several of us have parsed out how it worked, but you disregarded it claiming it was the end all solution to gaining DR. It is as both Dan and Scott have alluded above: nothing more that an automated under-exposure to preserve highlights, then a bump to normalize gamma for a properly "exposed" image. An internal processing gimmick for those that don't know how to properly expose and process out a normal-looking image. The actual recipe of how Fuji actually accomplishes it is not documented anywhere that I could find, ditto Nikon's version -- but a gamma curve adjustment post capture will not show any change in exposure OR ISO... Regardless, if you underexpose then bump exposure in a post routine via any methodology, you will either lose total DR or gain noise, or both -- there is no free lunch in physics. The only "magic" here is that very dark region noise gains are far less visible issues in images than clipped highlights -- protect the highlights, then gain a little noise in the darkest shadows areas you have to lift and nobody notices anyway, voilà, a "better looking" image...
Also, I agree ISO 500 is an odd choice on the GFX 100. It and 320/400 generate more noise than 800. In fact, ISO 500 is about equivalent noise to 1200 on the GFX 100 sensor. Granted, DR is a bit better at the lower ISO's, but with the noise offset, it turns out in real use, 320 through 1200 are all but equal in performance. So a not horrible Auto ISO practice would be ISO 100 for static, well lit and/or tripod images; Auto 100-1600 for most general "walk-around" imaging; and 100-6400 for broad range imaging -- and here go ahead and take it up to 12,800 at night if you don't mind adding post NR tools for the images that get taken there. This system works like a champ.
And so, IMHO: Auto ISO IS actually a Godsend to modern imaging, even on the GFX and more so on the fatter-pixel bodies... When used properly, it allows using a single MANUAL exposure and relying on ISO across a range of lighting situations that we would have needed multiple films to cover even half as well back in the day (let alone far more flexibility combined with A S P modes). Of course you need to implement it properly and not go overboard in your top ISO choice. But there even 3200 remains very usable on the GFX 100... Okay, /rant, measurebate away...