Hey unfocused... your definitions are both correct to a discernible degree... Yes, the downfall in photography, DR range was/is printing... film had a few more stops than photographic paper back in the day... I think film, especially negative film, had closer to 9 stops give or take (slide film had anywhere from 11-13 if i'm not mistaken but it's been quite a few years). Photographic paper at the time had like 5-6 stops of DR, so the zone method was created to leverage the developing process, exposure process, and printing to get the most maximum range out of papers limitations. It was an entire class in itself... a lot of math and testing and experimenting.
Now with digital, we are once again limited by CMYK and printing... The RGB color gamut is vastly wider than CMYK and commercial printing has not been able to catch up and there is really nothing you can do about it without adding spot colors and such... Modern epson and HP printers have even added Red inks and Orange inks and i think even blue, not to mention light cyan, light magenta, etc... all trying to get the widest gamut possible. Commercial printers have yet to catch on to do something similar without really adding to the cost of production.
Now regarding dynamic range, it is the level of stops and subtitles that you see throughout the entire range of the print... DR is best seen as an S curve... most cameras can get most of the middle ranges but struggle getting the information in the extreme highlights and shadows in which the DR range gets elongated and such. The 5d2, for example had a DR, depending on the testing source, of around 11-12 stops of DR. I would guesstimate most consumer digital cameras out there on the market today should capture around 9-10 stops of DR easily if not more. Now the question remains, if nikon/canon/sony/phase one, etc develop a sensor that could capture 13,14,15 stops of DR, most of it, as mentioned above would be in the subtleties in the highlights and shadows, but whether any would show up in print is another thing. Of course with the increasing development of digital frames, projectors, HD monitors, etc... you can make a good presentation, but for professional photographers delivering paper prints to clients, until not only cameras but printers/ink/output/cmyk development continues as well, it really is a futile argument.
Edit... epson a few years ago came out with the R2800 which was supposed to give more DR by having multiple black/gray inks to give more definitions in subtle tones, as well as give cleaner B&W prints without any color tinting that was prevalent in standard B&W inkjet printing... While successful, It also struggled in the color part because where they added in blacks and gray inks, they took away in color inks to compensate... now they have the R2880 and the R3000 which is trying to blend the technologies... It's still a work in progress however these printer companies update their printers almost less frequently than the 1d series does and commercial printing really hasn't changed a whole lot in the last half decade.