Auto Gradation makes pictures look washed out?

I've been looking at the comparison of auto and normal gradation here:
http://www.dpreview.com/reviews/olympusepm1/16

To me, the photo taken using Auto looks washed out and somewhat unappealing, just like many of the photos I've taken under the same conditions did (inside forests, e.t.c). True, it's got a much greater range but at what cost? Am I just wrong in preferring it? I've heard many people saying use it sparingly, but presumably for the well documented increase in noise, rather than a subjective dislike. Plus, olympus seems to suggest that Auto Gradation prevents washed out images.

As a separate question, could I consistently reduce the washed out look produced by Auto gradation by using the camera's in built tone curve tweaking? Or would it be better to use it only when I specifically need more range (which I must admit, I'd find hard to judge by eye).