I think this video should end all who doubt what the OP is saying. It should be put on the front page. View the videos full screen if you can't see the details.
YouTube:
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You can read the annotations in the video (make sure it is on). And read the description too provided in that video.
The video shows the dynamic gamma changes over and over again. You can do this too yourself by using the four finger swipe method. See video below...
YouTube:
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For those who are too lazy, here is what the first video says in the description...
This video shows the iPad 4 adjusts gamma settings dynamically, especially when you are playing videos. Is this a good thing? Should the display be like a camera system where the software adjusts the exposure for brightness? In this case gamma is adjusted, making some things in the display too bright or too dark to see. Could interference with gamma ruin good movies where they are meant to be at one gamma setting throughout the movie? If a scene is supposed to be dark, and you make it too bright, you may ruin the flavor of horror movies.
Hopefully this is not a way to compensate for poor dynamic range of the display made by LG (especially in viewing darker ranges of images like in movies or films). As an example, if the display can only handle subtle shades brighter images, and the darks are difficult to differentiate between shades, then the software may try to brighten the darker scenes until a brighter scene comes on. A good display should be able to display both bright shades and dark shades at the same time if it has good dynamic range. This is ONLY a speculation. Not a full-proof answer to why Apple does this in iPad 4. It has been reported that iPad 3 and iPad Mini does not have this dynamic gamma adjustment.