The excessive volume of commercials is a two stage problem. First, the commercials are not recorded at the same audio quality as show content. Lower dynamic range causes overall audio level to be elevated. This is a matter of signal processing and cannot be avoided. The second, perhaps bigger issue, is that TV networks boost the volume levels for commercials. This combined with the first issue creates a huge volume difference between show and commercial audio. Here is a thorough look at effect of low dynamic range on signal level,
'Dynamic Range' & The Loudness War.
What Audyssey Dynamic Volume does is, it looks into the upcoming signal and applies a cut to the high dynamic range content subsequent to low dynamic range content. An example is explained in the Audio Demos section
here,
Unfortunately, the only way to control Dynamic Volume setting is by input source. For that input, the setting will apply to all content. So, while the commercials are getting compressed to give a consistent volume compared to shows, a Pay per View movie will have the same processing applied to it. Consequently, most of us 'audioholics' just leave it off, and use the remote's mute button to exert some control on the situation.
You should test the setting for yourself. Play something with huge dynamic range and then again with Dynamic Volume on 'Light'. I would not recommend going to a more aggressive setting than 'Light' for anything where you'd like to have at lease some amount of dynamic range. Maybe, depending on the situation, you can use it or keep if off. For example, sleeping kids around, Dynamic Volume 'High'. SO in other room, use 'Light'. At all other times, especially critical listening, use 'Off'.