It's not a dike move by nVidia, it's more simply that the threading differences between there CUDA architecture and an x86-64 chipset are different and need different scripting/programming. They are fixing it and it will probably catch up more on the CPU front as multi-threading is implemented correctly.
Sheesh, it's like we have stepped away from the Morrowind/Oblivion really devoted fan war into the ATI/nVidia really devoted fan war.
My points were 1) the video was practically misleading, 2) much of what PhysX is famous for can now be done with Havok, if perhaps a bit slower, and 3) Havok is cross platform - which means you don't have to irritate console and ATI/AMD users to make nVidia users happy.
I never said PhysX wasn't good, and I know as well as anybody else that nVidia bought the technology as a way to get a leg up on the competition. I can also tell when PhysX extensions are turned on in a game as well as anyone else, and they are nice. I actually own an nVidia card that can us PhysX and CUDA - so I certainly don't mind seeing it in a game. I've seen the rest of the sled demo, where they simulate a bridge breaking into a million particles, and it still flowed smoothly (well, on an incredibly high-end rig with dual/SLI Fermi rig, but still) It's an impressive technology.
IOW, in the unlikely event Skyrim is PhysX capable, I would certainly be seen making sure it was turned on, since I can run it.
However, it isn't really "necessary", and it generally ends up making cross-platform support tougher. To me, and I suspect Bethesda, the cross platform issue is a real problem, and while Havok may not be as fancy, or as fast, as PhysX, it gives you a more or less even playing field for physics modeling across a variety of platforms.
Lastly, RPG's are not (generally) as graphically demanding as FPS's. We aren't going to be launching RPG's or hundreds of bullets at buildings in Skyrim, we are going to be running around with swords and spells. Even without GPU acceleration, you can get many of the nice effects we want like water, cloth, etc. that seems to behave correctly. IOW, if we have clothes and flags that flap in the wind, water that splashes when we jump in it, and the ability to bounce bottles off of NPC's, I think most TES players will jump for joy.
Frankly, I'd rather see Bethesda spend the money they would spend on PhysX support going into other areas, like NPC AI and quest development.
Again, as I have said, 1. WHAT video? I have linked to a video, it's accurate of what it can do.
2. Havok can't do it on the scale PhysX can, many of the things it's now catching up to are just demos, running them in a game can be too intensive, running cloth on every character in a single zone will be heavily CPU intensive, I am sure some level of cloth can be run, but to run every single character with high levels of it, I don't while PhysX can simulate that without issue.
3. Again PhysX is also "Cross-Platform", it can work on the PS3, X-Box 360 or Wii.
As for the "ATI/nVidia wars", no, that's the problem. People are derailing something we would like to see because of that, we'd like to see PhysX in Skyrim, it's that simple, we don't want to enforce it over ATI users and have never said we'd want to and this has been the biggest issue, why are people bringing up ATI in this at all? I didn't start that, nor did the OP. In fact I have even mentioned that ATI is going down the bullet line which should be hardware accelerated (tho I haven't looked up how well it is yes). But we have PhysX here now, the cost of implementation is only the developers to implement it since the SDKs for PhysX are free. As it goes, I highly doubt it'll be implemented in Skyrim, since that's still a "cost". RPGs aren't always graphics demanding, however this is a game series that is still First Person and it is still nice to have good physics and graphics, more so in an action/adventure RPG like Skyrim...