Newsflash for your brother: Standard viewing modes on Plasma and LCD TVs are oversaturated. Dynamic is way oversaturated but is typically necessary in a bright room. The Movie modes tend to produce the most accurate colors, and many complain that it can appear dull.
Now, granted, those are a different class of screens vs the small ones found in phones. However, the point is that oversaturating is not uncommon to enhance visibility. Now, stack up LCD with it's rather poor contrast, extremely moreso off angle against AMOLED's near infinite contrast ratio. Just because people are well accustomed to LCD doesn't make it any more "natural" than AMOLED.
On a side note, it's worth pointing out that Samsung is including DNIe technology (which is excellent, btw) found in their TV line on it's AMOLED phones now, at least with the current int'l SGSII. Granted it's only available with the video player, but you'll be able to adjust the mode between things like natural, movie, standard, and dynamic.
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