Chuck: Thanks for your expansive explanation. It seems initially logical that by adjusting the black and white points inwards, the gradation of tones will be greater. You'll be expanding the range from 0-165 to 0-255. I also read somewhere that data is greater more at one end of the range than at the other which is why some people expose to the right. However that's in a camera where you can change exposure. In my scanner at least, the scan falls within the normal range and cannot be clipped because of the limits of the dMax of the scanner.
The question I'm wondering is first how do we know that the scanner is not just adjusting the black and white points, either automatically or manually as selected, after the scan's data is captured "flat". Not before or during the scan. In effect, the data at the end of the scan for the range of that particular photo is the same whether white and black points were adjusted or not. It's just that the scanner program applied a level adjustment to the data after the scan is done and produced the full 0-255 range of data for the photo portion. But the data for the photo range of 0-165 as in my example contains the same data at the end of the scan regardless of the black and white point setting.
If that's the case, than the final outcome would be effectively the same as applying levels in Photoshop afterwards.
Do you know of any educational, professional or trade referecne that would explain these processes? Thnaks Alan.