Reducing EV in the Coolpix 5000 versus decreasing contrast and saturation (and increasing EV).
 

1.
EV: 0
CONTRAST: 0
SATURATION: 0

No compensation
 
2.
EV: -0.3
CONTRAST: 0
SATURATION: 0
Underexposing by -0.3 EV reduces dynamic range slightly
 
3.
EV: 0 EV
CONTRAST: -1
SATURATION: -1

Reducing in camera Contrast and Saturation sharply reduces the dynamic range !!!

 
4.
EV: +0.3
CONTRAST: -1
SATURATION: -1
Increasing by +0.3EV will increase the dynamic range.
 
5.
EV: +0.7
CONTRAST: -1
SATURATION: -1
Increasing the EV with +0.7 EV will make the dynamic range similar to case 2. but the histogram is still poorer.
 
Click here for examples with clipped highlights.