Should this be done using image processing software like Photoshop or with the camera's built–in function?
It seems to me a program like Photoshop could use much better algorithm than what is available in the camera; or does the camera do something else before taking the image?
Note—I'm asking about standard shooting mode, with HDR (High Dynamic Range), Exposure Bracketing, ADL (Active D-Lighting) modes turned off.
Isn't the logic here the same as the logic with digital zoom, which is useful only when shooting in a compressed format as the zoom is done before compressing. Or is there something else?