I have scant knowledge of what goes on at minilabs, so I hope some of you can help me shed some light on this.

Sent some rolls of film (Fujifilm 400) to a KM minilab (No.1 Color Centre). Are there any difference between their machines and Fujifilm/Kodak ones? I ask because the film prints look very much like low-quality digital prints. Blown highlights, lack of detail, etc. Are they using a "digital technique" to print 35mm film? My guess is that they develop the film, then pass the negs through a low-res scanner. Do all other minilabs go through the same workflow? Because if that's the way things are done now, it kind of defeats the purpose of using film (for getting quality output).