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it is bloody annoying. it also does not help battery life IMO. turning it down to 20% is where i find real balance--and less migraines. it is not a smooth gradual transition to have auto on Android. it just abruptly changes like during mid-game and really becomes a pest.
I have had mixed results from autobrightess from various phones, Android or otherwise. I hated it on my HTC Desire Z because it is too bright indoors. Outdoors it is fine. On my SGS3, I love it as it sets the brightness to a setting I am comfortable with. I turn it off on my Transformer tablet as I use it in the house exclusively. I would manually adjust it if I am watching a movie and want it to be brighter.
For non-Android phones, the auto-brightness on my Nokia N97 is fine, although a little bright for really dark areas. It is also fine on my BlackBerry Tour.
Overall, my main complaint about auto-brightness in general is that I cannot calibrate it to the way I like it. If I want it a little darker or brighter in some lighting conditions, I cannot change it. I have to accept how the manufacturer calibrates it or have to switch to manual brightness.
You can calibrate it actually. I just posted an app that does it.