I didn't see anything wrong with the Imaging Resource review. He doesn't know that 1/3 stop step charts don't produce 4 significant digits though. Once you realize that, seeing 12.1 stops out of a 12 bit camera isn't concerning, it's just an error of precision (and artifacts of software). The reviewer also expressed disbelief that the S3 could rate lower than other cameras. That suggests that he hasn't completely thought through what he is testing.
These days a "fact" can be established simply by stating it and having it recognized by someone else. We've even seen such tactics used as justification for a nation to go to war. I'm not equating the two, but it's very easy to publish something pretty, get a bunch of parasitic click-thru bloggers to link to it, then the next thing you know it's presented as fact on a Wikipedia page. I see wrong stuff posted on the internet every day now as bloggers don't feel any obligation to pass a sniff test. History is written and rewritten with unprecedented ease these days. Information is easy now so the burden is on us to be sharp.
I'll attempt to describe the 12 bit, 12 stop relationship:
Every stop represents a doubling or halving a light intensity. In the binary number system each digit (bit) represents a doubling or halving of the value of the digit next to it. The sequence 1,2,4,8 represents a doubling of the previous number and in binary that sequence is represented as 1,10,100,1000. As you can see, there's a direct correlation between photographic stops and bits in a digital value.
Let's assume that a digital camera has a 4 bit converter and that exposure is set perfectly to fully saturate highlights. In that case, a highlight pixel will have a value of 1111. Now let's stop down the exposure by one full stop. The resulting digital value will be half, or 0111. Doing it again results in 0011, a 3rd time results in 0001 and a 4th results in a totally black pixel. As you can see, the dynamic range of the camera is 4 stops and that's directly a result of the 4 bit converter. No linear digital system can have dynamic range greater than the number of bits in it's converter. It can have less.
In reality, digital cameras aren't quite perfect so a 12 bit system will have a bit less than 12 stops. If you read
Clark he states that 11.6-11.8 is the realistic limit for 12 bits (figure 4 of that article). You would think that 14 bits would up the limit by two stops, and it does, but today's 14 bit converters don't have good enough noise performance at the speeds they run to realize the full gain in dynamic range.
There is also a difference in engineering dynamic range and photographic dynamic range and that confuses matters greatly. Since there is no standard for photographic dynamic range it's hard to compare in those terms, but photographic dynamic range is generally DNR - 3-5 stops. Photographers like to see shading in the lowest stop but they can't agree on how much.
BTW, I have great respect for the work required to perform meaningful testing of today's camera equipment and I believe that sites like dpreview do good work. It's still necessary to understand what they are testing, how to interpret it, and occasionally identify errors. Usually when you see something huge, like the diwa labs result, what is interesting is why the abnormal result occurred, not what the result suggests.