Yes but does that mean via HDMI/HD-SDI or when recorded internally to 8 bit as well? I have this suspicious feeling this is a fancy form of CineD that gives the effect of a wider range and grade-ability at the expense of other quality factors. Like others have said it could very well have a lot of noise. I could be wrong since I don't have any experience with any form of V-log but I have used S-log on the SONY F3. To me it seems adding a curve to an 8 bit format is still adding a curve to an 8 bit format no matter how you want to spin it.
http://www.xdcam-user.com/2012/04/can-i-use-8-bit-to-record-s-log/
Here is an article that talks about using Sony S-log with 8 bit formats and how it may not be the best option. I think V-log can be a great option but I honestly think most will only really see a major benefit by using a 10 bit external recorder. Not a difficult or expensive thing to add anymore if you want HD but can be a bit pricey for 4k. Just something to keep in mind about V-log. While it can and will work with internal recording I think the only way to gain any advantage from it is to record externally. Any other benefit we see online may be more of a placebo effect sort of like how so many gravitated towards CineD thinking flat was better.
As much as I fully agree with you Thomas, I do think there is an upside. Sure, we are limited by the sensor' ability, sure we are limited by 8-bit, but, we might as well use the available tools at hand to fit the spectrum INSIDE the camera's abilities, IF the scene warrants it. If the lights are gonna blow out, or the darks be buried in black, we could use log or cined or contrast to reel it in, and capture more of the scene we wanted. Even with the added noise or banding, it still may be beneficial for that scene. I'll try and use up the whole 0-255 on my camera, but if something is getting chopped off, and I don't want it to, I will try the tool that could bring it back in. Everything is a compromise anyway, make the compromise work for you instead of against you.