Hardly. It's a built in physics processor on nVidia cards only, which is probably more why it's so limited. In terms of physics, it allows the games to do stuff they probably never would have been able to do without it, though. It takes the load off the CPU to do the calculations and can allow for enhanced cloth and particle effects, as well as others, I'm sure.
That's just a little misleading
. It's a physics simulation engine/API, like Havok, but unlike Havok it can, optionally, use nVidia cards as hardware accelerators. It can run entirely in software too, though. As for PhysX being more limited... well, I think this quote casts some light on the situation.
"Thanks to it’s free license and rich feature set PhysX SDK, preferred by small teams, is dominating PC market. Currently PhysX SDK is widely adopted by russian (mostly trash games) and korean (mostly specific MMOs) developers. Not to mention, that PhysX SDK is default physics solution for Unreal Engine 3, used in majority of UE3 based titles (Gears of War, Mass Effect, etc). Year 2009 has brought some popular games, like Dragon Age: Origins, Overlord 2 or Risen, into PhysX library.
Havok is currently best choise for AAA titles – extensive toolset , orientation on consoles, best-in-class developer support. Well-known titles of year 2009, like Uncharted 2: Among Thieves or Killzone 2 are based on Havok. Surprisingly, even Try Havok initiative hasn’t helped Havok to gain popularity at indie-developers community." (from http://physxinfo.com/articles/?page_id=154).
In other words, PhysX, being cheap (or free) is preferred by small teams who aren't well placed to get the best out of it, and so has a poor reputation. Havok, being more established with better tools for developers, is preferred by big game studios who can get the best out of it.