I've read a bit about how it can be useful to use a "flat" profile for shooting video on a DSLR which produces only compressed video. For example as described in this article. The reasoning is that most lossy compressors (like H.264) will do more compression in the darks, removing that data and making it impossible to adjust in post. (For example, if you brighten it, you'll get bright gray squares instead of whatever data was there before compression.)
The author of the above seems reasonable. He worked at LucasFilm and has directed many music videos and feature film VFX shots. It doesn't seem like he's suggesting some fad, but is talking from experience.
In the answer to [Post-production workflow: VFX before color correction? workflow: VFX before color correction), this was included in the accepted answer:
As far as low contrast and low saturation, I would disagree rather strongly with shooting for low contrast/low saturation. This is how you get noisy, low quality color. Your camera has a limited number of colors it can describe, if you ignore a large portion of that color space, then you can't describe as many colors and the resolution of your color after boosting the saturation and contrast will be very greatly reduced.
These sound contradictory to me, but maybe I'm misunderstanding. Is the advice to shoot flat good advice for DSLRs with lossy compression or not?