Hmm.. still waiting for that "But Snacko's HDR looks awesome!" from FT.
Or... wow! What an ugly hat.. But it looks good on you.
Actually, HDR can modify the picture in many ways. Mostly it is known for adjusting the under exposed and over exposed areas in the way you mentioned FT. And that is not necessarily unrealistic. If you look at a scene, and focus on the bright areas, your eyes will adjust to let in less light. If you then look at the dark areas, your eyes will adjust to let in more light. This is how the human eye works, and how we see reality. Normal photography did not do this in the past. It just picked an average based on certain criteria and that was applied to the entire photo. So, HDR 'can' make photos look more realistic.
That said, it can also be overdone. And we are not used to seeing most photos that way. Some of mine in my link above are probably overdone on some ways. To some people. HDR can also adjust the tone, color, diffusion, and a bunch of other settings.
I personally like it best when it is kept closer to real, and the colors are also kept realistic.