Jeff,
In HDRComposition, I used the defaults except for threshold. I dont see any hard edges. I determined the threshold by exploring the values in saturated regions (hover mouse over such a region, look at the values displayed at the lower border of the PI window). They were in the range of 0.2..0.25 (dont know why). Subtract something from this (to account for non-linearity as the sensor approaches satuaration), and you have your 0.17.
ColorSaturation is an intensity transform, just like Curves or Histogram, only specialized at adjusting color. You can get more intense red color by moving up the red end of the curve (or try shifting the color scale so red is in the center, then move up the central portion of the curve). Also try adjusting the scale parameter: You can set it up to 10 to get more dramatic (and sometimes rather artificial) color effects. The preview functionality is rather helpful.
Georg