Tater, maybe you've misunderstood the Dynamic EQ feature as compared to the Dynamic Volume, which is a type of volume compression and doesn't have to be used for most source material. The Dynamic EQ adjusts frequency response to compensate for our ears lower sensitivity to bass and treble at low volume levels and also increases the relative level of the surrounds in quieter passages. The general response to it has been highly favorable.
You're right, I didn't quite understand it by your definition... Sounds very interesting though. It sounds like it helps at lower volumes the most, which really won't help me a whole lot but perhaps it can't hurt to try it out. Does it react according to the volume the receiver is at, or according to the volume being output from a source (say a quiet scene in a movie)? If the latter, it sounds like a cool deal.
