Jdub is right. That is most certainly an effect, and is definitely not how it is supposed to look. When you properly calibrate one of the newer TV's, you should turn off this feature. You can find a forum or article with the proper calibration methods for your specific TV, or you can just pay someone from your nearest home theater store (or even Best Buy) to come and calibrate it for you.
So, don't worry Nglazer. You're definitely right, and your friends are wrong.
So, don't worry Nglazer. You're definitely right, and your friends are wrong.