I have not had an opportunity to do detailed tests on a modern DSO with a graded index display so I have no idea how they operate but I have seen them miss glitches without peak detect mode so something is different. We had a discussion about what they should display if not simple index grading here months ago but it had more to do with accurately displaying noise rather than peaks. There are all kinds of clever things which could be done which are decidedly non-analog like.
This is a most interesting discussion, and I'm going to follow up that search term.
One of my current projects is to build a cheap, very fast scope which will have some decidely strange characteristics in order to accomodate fast+cheap simultaneously. It will necessarily have something akin to a graded index display even for fast waveforms. I am aware that I haven't considered how it would work with slower waveforms, and this will force me to concentrate my mind. OTOH I might decide that the sole raison d'etre for the scope is speed, and, in the short term, merely ignore the issue
The short discussion came about in connection which how an analog oscilloscope can be used to accurately measure the RMS value of wide bandwidth Gaussian noise which is usually a rather difficult thing to do requiring a specialized instrument like a sampling or thermal RMS voltmeter. DSOs
should be able to measure it directly using the same techniques that sampling RMS voltmeters use but some work better than others doing this. What no DSO can do is duplicate how an analog oscilloscope does it and they work every time. At least I have never seen or heard of one which can do it.
I doubt the above technique, tangential noise measurement, is feasible or even desirable in a DSO but it led to a short discussion about *how* a display which is not exclusively index graded could produce the same result. (*) My thought was that such a display could also show detected peaks without compromising index grading.
For myself, all of my DSOs are old and slow and lack index graded displays but they do have peak detection and oddly enough very high display resolution which makes up somewhat for their other shortcomings. "Retina displays" existed in DSOs about 30 years before Apple came up with the term.
Producing an index graded display record during decimation would preserve display quality and high waveform acquisition rates at the expense of record length. I think Tektronix wrote some white papers discussing this and how their early "digital phosphor" oscilloscopes worked. I wonder if this can be done inexpensive with an FPGA based design. I know Rigol is not doing it this way. This is in contrast to display generation from long record lengths so has little advantage as far as specmanship and marketing.
(*) Technically index grading is not required to do tangential noise measurement. A halftone display produced via variable dot density like you would find in an analog sampling oscilloscope is sufficient.