This comes up so many times, probably because the answer is rarely clear cut.
First lets look at exactly what the difference between an 8 bit and a 10 bit recording is.
Both will have the same dynamic range. Both will have the same contrast. Both will have the same color range. One does not necessarily have more color or contrast than the other. The only thing you can be sure of is the difference in the number of code values. An 8 bit video recording has a maximum of 235 code values per channel giving 13 million possible tonal values. 10 bit recording has up to 970 code values per channel giving up to 912 million tonal values.
There is a lot of talk of 8 bit recordings resulting in banding because there are only 235 luma shades. This is a bit of a half truth. It is true that if you have a monochrome image there would only be 235 steps. But we are normally making colour images so we are typically dealing with 13 million tonal values, not simply 235 luma shades. In addition it is worth remembering that the bulk of our current video distribution and display technologies are 8 bit – 8 bit H264, 8 bit screens etc. There are more and more 10 bit codecs coming along as well as more 10 bit screens, but the vast majority are still 8 bit.
Compression artefacts cause far more banding problems than too few steps in the recording codec. Most codecs use some form of noise reduction to help reduce the amount of data that needs to be encoded and this can result in banding. Many codecs divide the image data into blocks and the edges of these small blocks can lead to banding and stepping.
Of course 10 bit can give you more shades. But then 4K gives you more shades too. So an 8 bit UHD recording can sometimes have more shades than a 10 bit HD recording. How is this possible? If you think about it, in UHD each color object in the scene is sampled with twice as many pixels. Imagine a gradient that spans 4 pixels. In 4K you will have 4 samples and 4 steps. In HD you will only have 2 samples and 2 steps, so the HD image might show a single big step while the 4K may have 4 smaller steps. It all depends on how steep the gradient is and how it falls relative to the pixels. It then also depends on how you will handle the footage in post production.
So it is not as clear cut as often made out. For some shots with lots of textures 4K 8 bit might actually give more data for grading than 10 bit HD. In other scenes 10 bit HD might be better.
Anyone that is getting “muddy” results in 4K compared to HD is doing something wrong. Going from 8 bit 4K to 10 bit HD should not change the image contrast, brightness or color range. The images shouldn’t really look significantly different. Sure the 10 bit HD recording might show some subtle textures a little better, but then the 8 bit 4K might have more texture resolution.
My experience is that both work and both have pro’s and con’s. I started shooting 8 bit S-log when the Sony PMW-F3 was introduced 7 years ago and have always been able to get great results provided you expose well. 10 bit UHD would be preferable, I’m not suggesting otherwise (at least 10 GOOD bits are always preferable), but 8 bit works too.