In reply to timjones:
You can divide tone mapping approaches into two general forms, "global" and "local".
Global algorithms treat the whole image equally, and are basically equivalent to setting up some curves. A point with brightness X in the original will end up with brightness Y in the result no matter where in the image it is. You generally end up with a natural looking picture that your brain will accept as a photo. The down side is that you lose detail as it gets compressed out. Exactly the same as doing a raw conversion.
Local approaches try to increase local detail by accounting for local brightness and boosting the contrast of smaller features. These are the ones that people are thinking of when they complain about HDR. Big problems there are flattening all the big gradients out to a uniform level, noise and halos.
It really doesn't help that most HDR software turns the settings up to 11.
It's possible to do halo free local tone mapping but hardly anyone does. I suspect it's because HDR haters have already decided they won't use it, and HDR lovers actually like the artifacts so there is no point.
I ended up building my own stuff to try and get sensible results. Here's an example:
http://www.spectral3d.co.uk/Personal/pics/2012/ballater_feb_2012/ballater_f...
Not a great photo, but the only one I could find at short notice.
Post edited at 18:48