I'd go as far as to say that's unfair to procedural content generation in its current form, with middleware such as Speedtree that relies on procedural generation. And that you can see newer more user content creation based systems, ones often heralded as more innovative than a lot of contemporary games, are also using procedurally generated content to help players customise characters, environments and so on. If you saw Sony's E3 demo, Mod Nation Racers in particular demonstrated this, the most obvious example being the 'village tool', which spawned well, villages around the track as a part of the environment. Of course there are other, better examples, but I wanted something up to date, I could've cited 'Collect Blue Spheres', which would be almost as valid if we were in 1994.
Edit:
Also I feel that point is kind of irrelevant, mostly owing to the fact that procedural content generation is a vague description of a method of generating content on the fly, as opposed to hardware tessellation which is a specific 3D rendering technique.
To clarify, I don't think this is a huge, groundbreaking development. As you say tessellation has been an option for many years, but many have chosen not to adopt it. I propose that one of the key benefits that tessellation provides is that it's fairly convenient in that it allows you to relatively easily remove detail going into the distance with a very minimal performance impact (referring to the Adaptive tessellation mode here) - whilst this can be done in software, it's a bit slower and probably slightly limits your draw distance. However, nobody is going to implement a convenience if it is not, er, convenient. The only reason developers will bother to adopt the technique will be because it's implemented in a standard API as opposed to AMD's proprietary extensions. Also, possibly, because Microsoft's tutorials and code samples are usually a lot easier to read than AMD's (which often seem to be needlessly verbose).