Yeah, it definitely changes the overall impact of the visuals. Still, it's a matter of preference for a particular colour palette,
Most people, or almost all, seem to find BF3 very realistic, so we can state that it's a little more than just preference.
not sure wether it means much from a console technology perspective.
The lighting math and the exposure settings and tone mapping curve and such are all very, very closely related to the rendering engine.
Or to put it another way, BF3 is a very good example of HDR done right.