Under the terminology of M by others above, as well as per earlier posting in another thread, I understand Pentax's auto ISO under M would be lack of any exposure compensation and it is simply another sort of automation. It has the same old weakness of totally relying on the in-camera metering and its preset AI.
That's incorrect. I've shot Pentax for several years, my last Pentax camera was the K5.
The Pentax implementation allows for exposure compensation when both aperture and shutter speed are set by the user. Pentax doesn't call this mode M, but TAv. The terminology doesn't matter, it's effectively M with the ability to use exposure compensation.
BTW, in case of A & auto ISO, +/- ev is to adjust S, in S & auto ISO, ev compsensation is to adjust A. Then, under M & auto ISO (if we M43 gets it), what will be adjusted while ev compensation is made? Any corresponding +/- to A or S will no longer mean manual A or S. If it will lead to a corresponding adjustment in ISO, then, why auto ISO in the first place? Finally, if it is the last case, would a hard key/dial to adjust ISO be in equal convenien instead of auto ISO in M?
Here is why exposure compensation is badly needed in M mode.
Say you are shooting birds with the great Olympus 50-200. You're shooting at 200mm f/3.5, but want to make sure to freeze action, so what do you do? You must use M mode where you can set the aperture to f/3.5 and the speed to 1/2000. You can't use A because you then have no control over the shutter speed and conversely you can't use T because you won't control the aperture. What you want here is to get proper exposure at a given aperture and speed combination.
Now, the birds you're trying to shoot may fly over a bright sky or in some darker areas. Regardless of the background the camera will meter to grey which means on a bright sky the bird would be totally black. Conversely, on a dark background, the bird will be overexposed.
What do you do then? You use exposure compensation to bias the metering algorithm to suit your need, exactly like you would in A or T! Why is it so difficult to understand? If you don't use it or don't like it, fine, just leave it at 0.
Both Nikon and Pentax implement exposure compensation in M mode (Pentax calls in TAv). The MFT world somehow still doesn't seem to realize how important this feature is... Go figure....