Thread starter hit the nail right on the head. I actually can't figure out what the hell they were trying to simulate with all this HDR lighting in both ArmA games. It's like those game designers that put this effect in haven't been outside in decades. It's totally unrealistic. Only place I see this happen is on my digital camera while the sensor adapts it's self to changing light conditions. Totally absurd, unrealistic and a gameplay killer.
If there were two things I hated in ArmA 1 and didn't want to see in 2, it was the way vision works in this way and how the AI could cheat. I mean I'm not bothered much by some blur or bloom and the matte painting effect it gives some times, just the disco effect. They should have at least put an off setting for it or something. Maybe in a future patch, although they might not know how so I doubt it. Too bad :( .