My opinion is that they've turned their video cards into sales gimmicks. I don't believe for one second that nVidia structured their architecture to fully utilize the current 3d api's while, at the same time, allowed for concurrent processing for the Physx api.
I would place my money on a conversation like this:
nVidia exec: "Hey, Ageia looks like a buyable company, any way we can leverage that?"
Corporate yes-men: "Absolutely, we have processors on our cards, we can use those to run the api. Oooooo! Oooooo! We can even give it an acronym!"
ne: "That's a good idea, I'm glad I thought of it. Call it CUDA, you know, like barracuda, 'cause I like that. Make it an acronym or something. Oh, and buy Ageia."
cy: "You got it, Boss!"
cy: "Here, make the 8x, 9x and new 200 line of cards do this." Hands an engineer a 1 page document explaining more about the acronym than any sort of requirements or even business spec.
nVidia engineer: "Um, this really isn't possible, you see..." He goes on for about 10 minutes explaining all the very good reasons why this is a bad, bad idea. The cy hears "blah, blah, tech-stuff, blah, blah, hope-it's-sunny-for-golf, blah".
cy: "Whatever. Make it happen or your fired."
ne: "Sigh. Ok."
The cards were not made for this. The simple proof is that they almost all have single core processors. Ageia cards have their own processors for a reason, and 1 processor to do the work of 2 will cut performance by about 66% (not half. There's quite a bit of overhead involved in concurrent processing).
Sorry for the extra bile and ire in this post. I have a huge problem with companies that lie to their customers to get them to buy their products, and I see this as exactly that. I also have a huge problem with nVidia now. If you would like to know more about that, I made a blog post
here a little while ago that you can read.
I know this is the way most corporations work. I still don't like it.