Avid 709/RGB function is a tad more tricky than you’re describing.
In Avid speak, exporting with the 709 setting means “don’t change any values.”
Exporting RGB means “shift the 16-235 values to 0-255”
[stig olsen] “That will give me a little dull image, but the details are there. How do you compensate for this export?”
This means that your video actually has color values outside the 709 legal range. And exporting as 709 from Avid does not mean your file is 709 legal. As said above, it only means that Avid won’t change the values on your export. That’s why, when you export as RGB, you’re losing some data — as there was information in the 0-16 / 235-255 range that you are now pushing out – since the RGB option is simply going to force the 16/235 marks and extrapolate out to 0-255. I hope this make sense and I have described it properly.
Sorenson Squeeze, when using the Mainconcept H264 encoder, has the option to properly remap these values. See screenshot:

I THINK the highlighted option is what you’re looking for (a 709 export, but with 0-255 range), but I can’t be sure. Experiment with the different values and check the results. Hope this helps.