So here is my basic dynamic range and edit range test.
IPhone 7 Plus on auto JPG:
IPhone 7 Plus DNG with AEL on the brightest spot on the bulb:
IPhone 7 Plus DNG after the following edits to test the editable range:
+5 Contrast, +1 stop Exposure, -50 Highlight, +50 Shadows
So here's what I think: When the iPhone 7 Plus is in full auto mode, it tries to even out the scene and the jpg compression along with noise suppression gives some artifacts. The highlights are blown in this intentionally high dynamic range scene and the shadows are also better exposed since the exposure is tuned to be even. The RAW file was intentionally shot to preserve highlight detail so the background is under exposed by about 2 stops. When pushed a stop up in exposure with -50 highlights and +50 shadows, we can start seeing a lot of chroma noise and also grain in the shadows. Lightroom on iOS tries to control the chroma noise and ends up creating a general grain across the shadows. The highlights are nicely maintained with only a small touch of chromatic aberration. So yes, the DNG was processed in Lightroom on iOS so the entire process can take place on iOS. It's not the best DNG edit that you can do but it does give some additional room to recover highlights and shadows without doing HDR photography. Again, I'm wishing that DxO Optics Pro could be on iOS and even the Photos version like on OSX would be great since it's more automated and can generally create a decent enough image for immediate use. If you then needed to add creative edits, you can then push it into Lightroom, or Pixelmator, or any other filter/photo edit app to make those edits. Overall, since the sensor is still quite small, I see that the grain on the photos will be larger in recovered shadows and we have wider depth of field even with the f/1.8 lens when compared with Micro four thirds cameras, 35mm format cameras, and even 1 inch sensor cameras. It's just a physics limitation. Overall, the iPhone 7 Plus cameras allow for even better photos than before due to the DNG format inclusion, faster aperture, and just faster processing ability. If I don't have my other cameras on me, the iPhone is my go-to solution.
Edit:
Hmmmmmm, photos aren't loading? Crud, might need lower resolution.
Here's a link in the meantime:
http://prints.alexanderchiu.com/p195117461