I disagree - nvidia had a working, stable and feature rich hardware physics implementation up and running in a matter of weeks... and it is something that game developers are interested in. I wouldn't call DX10.1 unimportant either some of the stuff like SSAO has huge potential... but outside of the few game studios that are being pressured to use it by ATI theres very little real useage or interest in it at this time. By the time most developers need these features to be able to implement things in a game we should have DX11 available and GPUs that can effectively use these features for best effect rather than in a limited highly specific fashion.
I think what some people are trying to get at is at the time dx10 was meant to be 10.1 but nvidia went moaning to ms and it got changed and really it seams to me that was a bit of a kick in the teeth for ati if that is true.