Comment by strogonoff

> So the whole information is not lost but the precision / details can be yes.

That does not seem a meaningful statement. Information, and by far most of it, is necessarily discarded. The creative task of the photographer is in deciding what is to be discarded (both at shooting time and at editing time) and shaping the remaining data to make the optimal use of the available display space. Various ways of competing dynamic range is often part of this process.

> like a compressor in audio production

Audio is a decent analogy and an illustration of why it is a subjective and creative process. You don’t want to just naively compress everything into a wall of illegible sound, you want to make some things pop at the expense of other things, which is a similar task in photography. Like with photography, you must lose a lot of information at it, because if you preserve all the finest details no one would be able to hear much in real-life circumstances.