Is real-time High Dynamic Range imaging, ala RED's HDRx, coming to Canon DSLRs with the next version of Magic Lantern firmware? Well, yes and no -- thus the asterisk. The system they've developed splits a 24p stream into two 12FPS exposures, one high and one low, and then interpolates the frames. It's an interesting hack, demonstrated here:
You will get two streams at half frame rate. For example, if you record 25p, you will get two 12.5fps streams. Interpolate them to 25fps and use your favorite HDR software to blend the frames. Our workflow is cross-platform and uses only free software: enfuse, AviSynth, InterFrame and VirtualDub... Will it work on 5D Mark II, 50D and 500D? Maybe. Right now there are some synchronization issues on these cameras. More details coming soon.
While this has a limited application, it looks like an interesting addition, and quite frankly even RED's more advanced HDRx exposure hack has limited capabilities when shooting motion. More on that soon.
Also coming in the next firmware: variable frame rates. They are limits and the cameras can overheat quickly, but here's a peak at the feature:
Link: Magic Lantern Wikia page (HDR feature should be available as of 12/22)