It's the roughly same thing as those flat picture styles for Canon. Trying to squeeze wide DR into 8-bit video by reversed-S curve.
Appreciate your efforts, but this is basically one of the reasons why ML RAW exists -- to avoid using those ugly picture styles 
Yes, it is like a flat picture style for Canon. And no, it's not trying to squeeze wide dynamic range it into a 8-bit (unless that is what you are rendering your files to). I recommend using a DNxHD 4.4.4. 10bit which is 20 times better than what any camera can provide internally.
Obviously, working straight with DNG's will be better, and there is no denying that. But like I've said in the beginning, this is especially for people who want to save space on hard drives and speed up their workflow.
It's just another option and to be honest - if Magic Lantern was able to somehow allow for the RAW data to be written into a film-log and rendered into a 10bit DNxHD or 12 bit ProRes file in camera, A LOT of people would use it and prefer it over raw DNG's. It would still provide you with your 11 stops of Dynamic Range and give you a more color information than some $6,000 cameras and use half the space.
It's no different than Black Magic Cinema Camera's ProRes option, which graded and compared to it's RAW, you cannot tell the difference between the two.
My latest test used the Flatz Preset, rendered to 10 bit DNxHD 4.4.4. and color-corrected in Resolve, and gave more 20 times more gradability than anything I've ever graded with H.264.