Your camera (including film cameras) never could take a fully accurate picture to represent what you see. Digital sensors and film don't perceive what our eyes do. It's always been up to you the photographer to ensure that. If you choose to shoot on auto, that's your choice to let the camera guess at the accuracy. Most people don't like what is actual reality so they under, over, long and short expose to choose what reality they represent. They light things artificially and they put make up on. The might even create stage scenes. Even in pure film days, humans have been altering the output. Whether it be for realism or artistic purposes, dodging/burning were effectively retouching practices in film.
Yes smart phone cameras are using computation to get a more "correct" output, unless it's being marked as a feature to alter the image such as face smoothing. Camera makers are always trying to make their camera sensors (or film makers) better perceive the range our human eyes can or at least give use the choice through data to make the decision on realism or art.
Your bit about the police officer is 100% irrelevant to your main point.
Yes smart phone cameras are using computation to get a more "correct" output, unless it's being marked as a feature to alter the image such as face smoothing. Camera makers are always trying to make their camera sensors (or film makers) better perceive the range our human eyes can or at least give use the choice through data to make the decision on realism or art.
Your bit about the police officer is 100% irrelevant to your main point.