In the case of this camera, the atrocity is the ugly sharpening and DNR. I think people are making too much of the banding issue. Many encodes that reach consumers whether from Blu-ray or iTunes, have instances of noticeable banding even on big-budget releases. Only video nerds with OCD like us will notice or care. In my opinion, the aforementioned issues are much more egregious and deserve the most attention.
Thanks for the comparison shots!