You're thinking about absolute range of a human system. Yes, I can look into shadows and my iris will imperceptibly dilate. Similarly, the stapedius muscle can

You're thinking about absolute range of a human system. Yes, I can look into shadows and my iris will imperceptibly dilate. Similarly, the stapedius muscle can dampen input to the oval window. So you can appreciate a wide dynamic range. But instantaneously, your retina is only good for about 7-8 EV steps. Modern imaging sensors deliver well over 10 EV, some deliver more than 14. Depending on which format you save to, you could be throwing away half the information! So, much like a artist should record 24/192, a photographer should be saving to RAW. But no monitor or film or the human eye will ever capture all that range in one instant. So, especially for temporal media, like audio and video, that space can be scoped down in the interest of space saving without any perceptible loss.