Nonsense, Darin's example sheds light on this perfectly. IF you stare at a 300:1 transition, in your foveal vision, is the rest of the field of view (if all points outside of the foveal region are darker) crushed into black? Of course not. Therefore, we do see >300:1. Sure, if you stare at an extremely bright source, your eye becomes saturated with scattered light. But as Chris quotes from the paper, move the source outside the fovea, and you resolve detail in the shadows.
Further, we need not move our eyes to do it. Sure, lateral vision is less detailed, but we can see transitions in luminance. I read alot of scientific papers, not in this field, and I write them as well. You have to be careful in applying their conclusions to the real world. In my humble opinion, and I do make mistakes, you and HH are not applying the science properly.