The amplification that an increase in ISO provides does help of course, but there are limits.
So the real question comes down to which exposure mode suits you best. Myself, I do best shooting everything in Full Manual Mode. My subjects require a particular aperture, and my situations require a particular shutter speed. I set my ISO to avoid clipping the highlights (once gone, they are never coming back).
Keep in mind that increasing ISO does not increase exposure (it only amplifies the photons that the aperture and shutter speed have already collected). Ironically, when in any of the auto exposure modes (incl Av and Tv), lowering the ISO will serve to increase the exposure!
Save for "dual gain," but that's another subject entirely ;-) .
R2
--
Good judgment comes from experience.
Experience comes from bad judgment.
http://www.pbase.com/jekyll_and_hyde/galleries